Current Exchange Rate Of Us Dollar To Pakistani Rupee
Introduction
The exchange rate between two currencies is the value of one currency in terms of the other. The US dollar (USD) and Pakistani rupee (PKR) are two currencies that are widely traded in the international market. The exchange rate between these two currencies is of great significance to traders, investors, and individuals who are involved in cross-border transactions. In this article, we will discuss the current exchange rate of the US dollar to Pakistani rupee.
Factors Affecting the Exchange Rate
The exchange rate between two currencies is determined by several factors, including inflation, interest rates, political stability, and economic growth. If the inflation rate in one country is higher than the other, the value of its currency will depreciate. Similarly, if the interest rates in one country are lower than the other, investors will prefer to invest in the country with higher interest rates, resulting in an appreciation of its currency. Political instability and economic growth also affect the exchange rate, as investors tend to avoid countries with high levels of uncertainty.
Current Exchange Rate
As of August 2021, the exchange rate between the US dollar and Pakistani rupee is 1 USD = 163.40 PKR. This means that one US dollar can be exchanged for 163.40 Pakistani rupees. The exchange rate is subject to fluctuations based on market demand and supply.
Historical Exchange Rates
The exchange rate between the US dollar and Pakistani rupee has varied significantly over the years. In 2010, one US dollar was worth around 85 Pakistani rupees. However, by 2020, the exchange rate had increased to 166 Pakistani rupees per US dollar. This shows that the Pakistani rupee has depreciated significantly over the years.
Impact on Trade and Investment
The exchange rate between two currencies has a significant impact on trade and investment between two countries. A weaker currency makes imports more expensive and exports cheaper, which can boost a country's trade balance. On the other hand, a stronger currency makes imports cheaper and exports more expensive, which can hurt a country's trade balance. Investors also tend to invest in countries with stronger currencies as it provides them with higher returns.
Conclusion
The exchange rate between the US dollar and Pakistani rupee is an essential factor in determining the trade and investment between the two countries. The current exchange rate is subject to fluctuations based on various factors such as inflation, interest rates, political stability, and economic growth. Understanding the exchange rate is crucial for traders, investors, and individuals involved in cross-border transactions.