Exchange Rate Of Us Dollar To Pakistani Rupee
The exchange rate of US Dollar to Pakistani Rupee is a significant factor in the economic relations between the two countries. The exchange rate refers to the value of one currency in terms of another currency. The exchange rate between two currencies is determined by the market forces of supply and demand.
History of Exchange Rate
The history of the exchange rate between the US Dollar and Pakistani Rupee dates back to the early 1950s. At that time, the exchange rate was set at 1 USD to 3.3 PKR. Over the years, the exchange rate has fluctuated significantly due to various economic and political factors.
During the 1970s, the exchange rate was pegged at 1 USD to 7.5 PKR. However, due to the economic policies of the government, the exchange rate started to depreciate rapidly. By the mid-1980s, the exchange rate had reached 1 USD to 18 PKR.
Factors Affecting Exchange Rate
Several factors can affect the exchange rate between the US Dollar and Pakistani Rupee. Some of the significant factors are:
- Interest Rates: The interest rates in both countries play a crucial role in determining the exchange rate.
- Inflation: The inflation rate in both countries can affect the exchange rate significantly.
- Political Stability: The political stability of a country can impact the exchange rate.
- Current Account Deficit: A high current account deficit can put pressure on the exchange rate.
Current Exchange Rate
As of August 2021, the current exchange rate between the US Dollar and Pakistani Rupee is 1 USD to 163 PKR. This rate is subject to change due to various economic and political factors.
The exchange rate can have a significant impact on various aspects of the economy, including trade, investment, and inflation. An increase in the exchange rate can make imports cheaper and exports more expensive. A decrease in the exchange rate can have the opposite effect.
Conclusion
In conclusion, the exchange rate of US Dollar to Pakistani Rupee is a critical factor in the economic relations between the two countries. The exchange rate is influenced by various economic and political factors and can have a significant impact on the economy. It is essential to monitor the exchange rate and take appropriate measures to ensure stability.