The US dollar has been holding steady against the Pakistani rupee in recent days, with the exchange rate hovering around 285 PKR per dollar. This has come as a relief to many investors who were concerned about the weakening of the rupee, especially after it hit an all-time low of 169 PKR per dollar in August 2020.
Despite some fluctuations in the exchange rate, the US dollar remained “not out” at 285 against the PKR in less than 3 hours. This has been a surprise to some market analysts who were predicting a further weakening of the rupee due to the country’s current economic challenges.
The stability of the US dollar can be attributed to several factors, including a rise in foreign exchange reserves, which increased to $19.8 billion in February 2023, according to the State Bank of Pakistan. Additionally, the International Monetary Fund (IMF) has approved a $6 billion loan to Pakistan to support economic reforms and stability.
Furthermore, the government’s efforts to boost exports and control imports have helped to narrow the trade deficit, which has been a major concern for the country’s economy. This, in turn, has contributed to the stability of the rupee against the US dollar.