US Dollar rises to eight-month high against rupee
The Pakistani rupee fell against the US Dollar after USD rose to Rs162 after three Pakistani rupees rose at the interbank on Wednesday.
This spike comes in the midst of mounting concerns about the spread of cases of coronavirus in the region, leading to provincial-level lockdowns that have brought economic activity to a halt.
The dollar was traded at the Interbank at Rs162, while the dollar was increased by Rs3.50 on the free market, and reached Rs161.50 against the Pakistani Rupee.
The drop in value comes a day after Prime Minister Imran Khan announced a one-trillion-rupee ($6.308bn) stimulus package for industry, business, and labor to protect them from coronavirus adverse effects.
As per information, the leap is due to the decision of the State Bank to cut interest rate by an additional 100 basis points, taking it down to 11 per cent. Last week, Pakistan’s central bank lowered the interest rate from 13.25pc to 12.5pc but was forced to cut it further to 11pc after a surge in coronavirus cases.
In March alone (until the 20th), foreigners took $1.4 billion in investment from Pakistan, which is more than 60 per cent of the total amount of foreign dollars that have invested in short-term government securities since July 2019.
Meanwhile, after the benchmark KSE-100 Index lost 1,336.03 points or a 4.68pc percentage decline to close at 27,228.80 points on Wednesday, the Pakistan Stock Exchange continued its stay in bear territory.