Pakistan: US Dollar at Highest ever rate in the Open Market

US Dollar in Pakistan is getting more and more stronger with each passing day. Normally, when US Dollar gets stronger, then other currencies like British Pound, Euro etc gets weaker: and $ also affect other currencies including Pak Rupee.

But if we take a look at the current Pak-Rupee vs $ vs other-currencies comparison, we will see that $ is not getting as stronger against other currencies as it is getting against Pak-Rupee.

Then what is the reason for Rs to get weaker against $?

There are many factors that influence the stability of a currency. Currently [according to experts], the demand for $ is getting high in Pakistan. Some experts believe that buying of $ by different banks [Pakistani Banks] is the main reason why Rs is under pressure. Some say that $ reserves have gone down and just like this, other experts give more reasons for the current scenario.

One other interesting thing to note is the rate of Pak Rupee against $ in the inter-bank. The selling rate is currently at around Rs. 85.20. This rate is much less than what it was few days ago: but at that time, rate of $ was not very high in the open market.

Today, rate of $ against Rs is approximately Rs. 87.00 [selling rate]. This rate can be different at different currency exchangers and in different cities. In some places, people have reported a rate of Rs. 87.50.

I have never seen $ at such a high rate in the open market in my life. Increasing $ rate means expensive petroleum products which will result in an increase of almost everything [fares, food products, clothing etc].