September 24, 2020

Pak Rupee Gains 8 Paisa Against The US Dollar

Showing signs of economic recovery, Pakistan’s Rupee gained 8 paisa in the interbank exchange market against the US dollar. The dollar interbank exchange rate currently stands at Rs155.98. The country has seen sharp increase in the exchange rate due to economic slowdown in the recent past. The dollar exceeded Rs160 in the open market, marking an all-time high exchange rate in the country’s history. The open market is expected to follow the similar trend. Experts say that due to the ongoing trade war and the overall world economy is slowing down, the Chinese Yuan and the US dollar are both feeling the effect of the tariffs imposed by each side on the other.

The exchange rate is expected to follow the same trend in the following days. However, the World Bank has again projected a macroeconomic crisis for Pakistan and has estimated Pakistan’s growth to slow down as well. The WB bases its analysis on a number of factors. The main reason for the slowdown can be that the trade war is causing the world economy to slow down. In a multiplier effect, the stock markets worldwide are being affected due to the tariffs imposed by the US and China on each other’s goods and the US is planning to open another front in the trade war by applying tariffs on goods being imported from Europe as well. This will cause the stock markets to respond in a negative way, which will affect Pakistan’s economy as well.

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