Exchange Rate Of Us Dollar In Pakistani Rupees
Exchange rate refers to the value of one country’s currency in relation to another country’s currency. US dollar is one of the most widely used currencies in the world, and Pakistani rupee is the official currency of Pakistan. In this article, we will discuss the exchange rate of US dollar in Pakistani rupees.
Factors that Affect Exchange Rate
Exchange rate is not fixed, and it is influenced by various factors. Some of the factors that affect exchange rate include inflation, interest rates, political stability, and economic performance. The exchange rate of US dollar in Pakistani rupees is influenced by these factors as well.
Historical Exchange Rate
The exchange rate of US dollar in Pakistani rupees has fluctuated over the years. In 2010, one US dollar was equal to approximately 85 Pakistani rupees. In 2015, the exchange rate increased to around 105 Pakistani rupees per US dollar. As of September 2021, one US dollar is equal to around 168 Pakistani rupees.
Impact of Exchange Rate on Economy
The exchange rate of US dollar in Pakistani rupees has a significant impact on the economy of Pakistan. A weaker Pakistani rupee makes imports more expensive, which can increase inflation. It also makes it more expensive for Pakistan to service its foreign debt. On the other hand, a stronger Pakistani rupee can make exports more expensive, which can hurt the competitiveness of Pakistani goods in the global market.
Factors that Influence the Exchange Rate of US Dollar in Pakistani Rupees
Several factors influence the exchange rate of US dollar in Pakistani rupees. One of the most significant factors is the monetary policy of the State Bank of Pakistan. The State Bank of Pakistan is responsible for setting interest rates, which can affect the value of Pakistani rupee relative to other currencies. Another factor is the political stability of Pakistan. Political instability can cause investors to lose confidence in the economy, which can lead to a decrease in the value of Pakistani rupee.
Conclusion
In conclusion, the exchange rate of US dollar in Pakistani rupees is influenced by various factors such as inflation, interest rates, political stability, and economic performance. Understanding the exchange rate is essential for businesses and individuals who engage in international trade or travel. Keeping an eye on the exchange rate can help them make informed decisions about when to buy or sell foreign currency.