Karachi (July 28, 2018): Dollar’s price has further dropped against Pakistani rupees by Rs.4 in open market as Pakistani rupee remains strong on Saturday.
End of political uncertainty following elections was attributed as the main factor in the significant drop in the greenback’s price, which had soared as high as Rs130 in the past week. After Imran Khan’s post-elections speech the dollar price started to decline against Pakistani rupee.
According to the Currency Exchange Association, the dollar price dipped due to a sufficient supply of the foreign currency in the local market.
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Dollar continues to devalue in open market, and has reached Rs 124.45, from Rs. 128.
According to a leading money changer, speculators foresee that there is a little chance that dollar would climb to new highs in short term. A selling spree was witnessed at the money changers and there were no buyers and only sellers.
On the other hand, gold prices also decreases with decline in dollar’s price. According to Haroon Chand, gold price has decreased by Rs. 2,850 per Tola. After which it has reached to Rs. 57,200 per Tola.The country’s economic fundamentals had deteriorated ahead of the July 25 general election. Since December, the rupee has cumulatively shed over 21% of its value after the State Bank of Pakistan reportedly abstained from intervening in response to the pressure exerted by a widening current account deficit.
Most financial analysts expect the incoming government to seek a post-election bailout from the International Monetary Fund.
Pakistan’s current account balance has widened sharply, while foreign currency reserves have plummeted over the past few years.