For the third time this week, the Pakistani rupee loses its value against the US dollar. Crossing the value of 158, the greenback maintains its upper hand by procuring a value of 158.65 against the unfortunate rupee, this Thursday.
The US Dollar vs Pakistani Rupee!
The news report indicates that the US dollar had been maintaining its position at Rs.158 for nearly six months in the interbank market. With the ongoing war relating to crude oil prices, the US dollar rose by 1.76 Pakistani rupees, on Monday. Furthermore, on Tuesday, the rupee observed a nosedive, acquiring a solid value of Rs157.44/dollar.
However, fresh out of the oven sources claim that the current value of the greenback has risen once again, this time gaining 85 paisas. This concludes the total increment by Rs4.05 (2.6%).
Details enlist that the greenback’s value surged, as a consequence of the recent stock market crash. It is when PSX’s KSE-100 index dwindled, losing 2,106 points (5.51%). Subsequently, this resulted in stopping all types of trade activities for 45 minutes.
Following the stock market crash, PSX management issued their statement saying: “PSX has triggered a market halt at 9:37 am which will last for 45 minutes. Nevertheless, The market halt is triggered as a standard protocol for risk management purposes.”
Impetus Behind The Value Hike!
The pinnacle of the value hike relates to when Russia repudiated to partner up with Saudi Arabia on distributing the oil shares. Upon, Russia failing to comply with the OPEC, the Kingdom of Saudi Arabia decided to deliver oil at its own prices, along with intensifying discounts.
The decision enumerates that Saudi Arabia will be ramping up its oil production up to 12.5 million barrels per day, instead of 9.7 million. Considering the situation, one way this will surely be beneficial for Pakistan as it would help thems ave $4-5 billion.
On the contrary, the central banks around the globe are facing a serious dilemma. Keeping in view a potentially slow economic growth, the banks will have to heighten their work to support the economy.
Head of the country risk and global strategy department at Fitch Solution, Cedric Chehab says: “Central banks across emerging markets are, on the one hand, facing huge sell-offs in their currencies. Moreover, on the other hand, a slowdown in growth.”
Adding to his conversation, he says: “So what do they do? Do they cut interest rates to stimulate growth or do they raise interest rates to support their currencies? I think a lot of central banks are going to be squeezed by this policy dilemma now.”
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