The US dollar marked the history against the Pakistani rupee in the currency market, followed by the rise of Rs5.90 to the US dollar in the interbank, reaching the highest level in history, at Rs 167.50.
USD to PKR– With the price rising by Rs 3.40, the purchase price of the dollar rate in Pakistan reached the highest level in Pakistan’s history. Interbank dollar buying increased to Rs 167 till now. The latest increase in the dollar value has added billions of rupees to the debt burden on the country. According to the details, the repayment of domestic loans by foreign investors and short-term investments from the stock markets has reduced the value of the rupee.
Meanwhile, State Bank Governor Dr. Raza Baqir said, “foreign investors are taking precautionary measures and removing investment from government securities to the dollar, which seems the most secure investment”.
Foreign investors benefited from investing approximately $ 1.8 billion in public debt instruments during the current financial year (FY 20). Global markets are seeing a collision because of the fear of COVID-19, and foreign investors are offloading their portfolios regardless of geographic assets, economists said.
The outbreak of COVID-19 has triggered a sentiment of risk, resulting in investors selling risky currencies such as the Pakistani rupee. However, the outbreak of the Coronavirus has a direct impact on Pakistan’s economy. To cope with the economic slowdown caused by the Coronavirus, Pakistan seeks $ 1.4 billion loan from the International Monetary Fund (IMF). Earlier this week, the State Bank of Pakistan cut interest rates by 250 basis points to 11 percent, while announcing a package of measures to help poor workers and the wider economy and protect them from the Coronavirus.