Amazing fluctuation of rupee

Amazing Fluctuation Of Rupee – Since the last few years Pakistani rupee has taken a horrible beating shattering its buying power increasing hardship for its citizenry. It has also witnessed tremendous volatility in its value as is demonstrated by the fact that it lost Rs.6 just a day earlier but gained Rs.12.43 in trading on the last trading day of the week reaching the mark of Rs.286.50. Pak rupee at one time crossed the 300 mark against dollar before slightly picking up and closing at 296.27 registering a fall of 3.2 per cent. The immediate reason triggering steep fall in the value of the rupee was the political turmoil that spread far and wide in the country after the confrontation between PTI and the government. Other factors also contributed in the decline of rupee including absence of agreement with IMF and reports of decrease of 12 per cent in remittances. These factors decreased buyer confidence and compelled the importers to resort to panic buying. It was also presumed that Pakistan may not get the loan tranche from the IMF in June increasing chances of default. The recovery in the value of rupee is however considered temporary and it is feared that the exchange rate would further deteriorate in the coming weeks. The Weekender