Due to different reasons, *British-Pound [*BP] vs US $ rate went down from 1.6+ to less than 1.5.
This happened few weeks back: experts said that Europe Dept issues and UK political situation were the main reasons for this decline.
Anyway, in Pakistan, rate of BP fell from approximately Rs. 140 to ~Rs. 125.
At this level, BP rate was kind of stable for few days and many investors may have invested their money in BP. But some people may have not invested because of the risk factor.
BP has reached as low as ~Rs. 108 in past: so at Rs. 125, a person may think that this rate can decrease further: just like the past.
Anyway, anyone who invested his or her money in BP when the rate was at Rs.125 or lower level: they would be happy to see BP rate increase. According in NBP rate list, BP is already above Rs. 130 and this value is expected to increase further tomorrow.
But what about investing one’s money in BP at the current level?
Is it a good idea to invest some cash in this currency at the current rate and in the current situation?
No one can give the correct answer: but here is my personal opinion.
I track Pakistan and US stock markets, and Gold, everyday and also read about the different factors that influence trends at these markets. One of the factors that is currently effecting the economy is: the weak dollar.
So what is the reason behind the current increase in BP rate?
Is BP getting stronger or is it the US Dollar that is getting weaker? Which automatically result in increase in BP price:
Find the answers to these questions before you decide to invest your money in BP.
