Dollar to Pakistani Rupee
Dollar to Pakistani Rupee currency exchange rate fluctuates almost on daily basis. US Dollar to Pakistan Rupee conversion is based on open market rates that are set by the dealers of currency exchange in Pakistan. As per the current scenario, the dollar is touching the sky against Pakistani currency. Stay tuned to get the latest information regarding USD to PKR exchange rates in an open market.
What is USD to PKR Today?
Weekly performance of USD to PKR shows increased in value and Pakistani Rupee is down by PKR -8.00 or -4.145%. The peak conversion exchange rate of US Dollar to PKR was PKR 197 and lowest PKR 193 conversion. Monthly fluctuation during the last 30 days as follows for USD to PKR: High PKR 197 and Low PKR 185.2 in value, where buying was PKR 199 and Selling 201.00
Dollar Rate in Pakistan
The US Dollar is recognized worldwide as an important currency. It is the authorized currency of the United States and is widely used in trade worldwide. The impact of the US Dollar is also significant in Pakistan as the PKR rates from the US Dollar are still around 180.44 PKR. The US Dollar is often used in trade for international transactions as it is the world's leading reserve currency. The US Dollar is considered inferior to other major currencies, as the International Monetary Fund adjusts its macroeconomic growth forecasts and the US trade slows down. However Dollar rate in Pakistan fluctuates almost on daily basis.
Factors Affecting The Dollar Hike
The United States enjoys global trust and confidence over the ability to pay its debts. United States Dollar (USD) is the world's strongest currency for facilitating commerce. In the current scenario, the Pakistani Rupee (PKR) against the USD has weakened due to various factors. The PKR is witnessing a historic decline, as its value is sliding steadily downwards for the last four years. This plunge, however, is raising questions on the role of the currency regulatory authority of Pakistan.
Why Pakistani currency is weak against the USD?
PKR has weakened due to a widening trade deficit as imports reached close to $8 billion in December last year. PKR has been depreciating against the USD in the interbank currency market for months. According to local media, this declining trend is a matter of concern for Imran Khan's government as it shows that the country is facing a deep economic crisis. The major factors affecting the currency exchange rate are the pressure on PKR due to higher import bills, increased inflation, and trade deficits.
The value of USD sees the fluctuation globally, but its impact against the PKR has been considerably higher owing to the rising import bills. As per a report published by the Pakistan Bureau of Statistics (PBS) last month, the country's oil and food import bill increased by 73% to $14.97 billion from $8.67 billion in the same period last year, owing to the increased international prices and a massive devaluation of the rupee. The depreciation in currency leaves hefty impacts on the exports and imports of the country, and likewise. Devalued currency paves the way for the rise in the imports bills, meanwhile, the export sector reaps the good fruit because of the higher exchange rates. However, this plan is unsustainable and not durable. If the value of a nation's money is indiscriminately reduced, it means that the economy of that nation is failing, and the market has almost lost to its competitors. Figures from the PBS show that in November 2021, the merchandise trade deficit reached $5.107 billion against $1.946 billion over the corresponding month last year. This is the highest trade deficit recorded in a single month in terms of value. Economic stagnation and recession disrupt the production process and create uncertainty in the market resulting in the devaluation of PKR. Also, commodities such as wheat and sugar which the country was exporting during the era of the previous government are now being imported. This is leaving drastic impacts on the imports to exports ratio.
The IMF factor
Pakistan had re-sought International Monetary Funds (IMF)’s help in 2008, after a seven-year gap. And since then, the country’s financial and economical reliance on the international fund body has gotten deeper and deeper. IMF puts strict financial demands while negotiating with Pakistan, and the currency devaluation is always on top. Despite the dialogues, the government has to agree on (even slight) deprecating of PKR.
Another massive reason for the currency devaluation is inflation. Pakistan's consumer price index (CPI) rose 13% in January from a year earlier, the highest in two years as per the PBS. The Economist, in its report in October last year has placed Pakistan as the fourth-highest inflated country. Ahead of Pakistan were Argentina, Turkey, and Brazil respectively. Two of those three nations rated by the Economist as having the highest inflation rates are not Pakistan's trading partners. It indicates that when a country's inflation rate is higher than that of its trade partners, its currency effectively overvalues, eventually devaluing.
In Pakistan, an estimated $10 billion is poured into illicit financial flows such as tax evasion and deportation. Money laundering affects financial sector institutions that are playing a crucial role in economic growth. It promotes crime and corruption that reduces productivity in real economic sectors. Money laundering has significant power to persuade the world's major financial markets whilst the Pakistani currency facing drastic devaluation due to it.
Remittances are critical in satisfying Pakistan's external financing needs as the government fights its current account deficit. As per the State Bank of Pakistan (SBP), the country received remittances of $29.4 billion in the fiscal year 2020-21, up from $23.3 billion in the previous fiscal year 2019-20, suggesting that an additional $6 billion were received as a result of the Covid-19 epidemic. However, if remittances fall dramatically as a result of the expanding disparity between the interbank rate and the open market rate, the incentives for Hundi/Hawala may increase significantly. Worryingly, as per the SBP, remittances fell by 7% in November 2021, to $2.35 billion from $2.51 billion in October, which also put weight in USD’s value.
Recent stability in USD value
Pakistan got its next due tranche of $1 billion from the IMF bailout package, last week. The development is a lifeline for Pakistan's collapsing economy, which is suffering as a result of rising global oil and commodity costs. Attempts to raise tax collections have most likely had the unintended consequence of fueling inflation. Likewise, the reimbursement also was a shot in the arm of the crumbling PKR which was struggling against the USD. As per the trade gurus, it’s the psychological phenomenon that gives the trust to the traders once they see a big induction in the country’s national exchequer.
Predictions for the USD in Pakistan
The rising inflation has been widely considered as the reason that would bring the PKR value of the USD to 200. The recent IMF board meeting is the most pertinent thing that would help the USD to gain more momentum against the PKR. Moreover, tighter monetary policy by the SBP, budget of fiscal-year 2022, massive trade deficits, and rising import bills will also tumble the PKR down.
Q. What is the rate of US Dollar today in Pakistan?
A. US Dollar rate today in Pakistan is Rs 201.00. In the last 30 days, the rate of US Dollar is decreased.
Q. How much is 1 US Dollar to PKR today?
A. 1 US Dollar equals 201.00 Pakistani rupees. However, the rate fluctuates on a regular basis. It is a reason that it is crucial for investors to remain updated with the USD to PKR today rate.
Q. How to calculate USD to PKR exchange rate?
A. There are different methods to calculate the USD to PKR exchange rate. However, the simplest one is that first, you have to check the rate of one US Dollar in Pakistan. In the next step, multiply the rate by the amount in currency. For example, if one US Dollar is equal to 201.00 Pakistani Rupees then ten US Dollar will be equivalent to RS 2010.00.
Q. How can I exchange US Dollar to Pakistani rupees?
A. You can exchange US Dollar into Pakistani Rupees from the money changers or currency exchange currencies. However, it is recommended to first view the latest USD to PKR rate to not become a victim of any fraud.