Dollar free floats to Rs252 against Pakistani rupee after cap removal
The dollar rate witnessed its most significant increase in a day as it rose by Rs12 in the open market on Wednesday, to reach all-time historical high.
On Wednesday, the dollar rate saw its biggest single-day increase, rising by Rs12 in the open market. This marks an all-time high in the historical record of Rs252.50.
A day ago, the Pakistan government had given the green light for exchange companies to “free float” the dollar which will allow for a more flexible and market-driven exchange rate of the greenback.
Following this, money exchangers decided to remove the ‘cap’ on the US dollar to abolish the grey market.
The sudden surge in the dollar rate has caused concern among market analysts, as it may lead to inflation and disrupt the economy.
This increase in the dollar rate can be attributed to a variety of factors, including political instability, economic uncertainty, and a decrease in the value of the local currency.
Many experts believe that this trend may continue in the coming days unless swift action is taken by the government to stabilize the market.
The impact of this increase in the dollar rate is already being felt by businesses and individuals who rely on imports, as the cost of goods and services is set to rise.
Some experts predict that this could lead to a decline in consumer spending, which would further hurt the economy.
The government and central bank are closely monitoring the situation and are said to be considering a range of measures to address the issue, including increasing interest rates, implementing capital controls, and devaluing the local currency.