KARACHI: The US dollar maintained its march toward the level it reached against the Pakistani rupee in the first week of this month, despite a worsening political crisis.
According to currency traders in the interbank market, the dollar traded as high as Rs186 throughout the day but ended the day at Rs185.92.
The dollar gained Rs 1.48 per rupee on a day-to-day basis, indicating the economy’s and its representational currency’s continued deterioration.
Currency traders said that the rupee would not be able to recover in the short term, citing political uncertainty as to the reason for the rise of the US dollar.
When the dollar reached an all-time high on April 7, most currency analysts concluded that the increase was mostly due to speculation. However, after Islamabad’s change of administration, the dollar fell to Rs 181.5 before resuming its upward trajectory and rising to Rs 185.92 in only four sessions.
Currency dealers are uncertain about the exchange rate’s future path since the political solution does not seem trustworthy to investors and traders.
Investors from other countries have already stopped investing in the country, and commercial bank accounts in the country lost money in March.