Reasons for the tremendous increase in the value of dollar against the rupee are political or economic?

In Pakistan the local currency is currently losing its value rapidly against American US dollar. The dollar is at an all-time high against the rupee & seems unlikely to come down under current circumstances.

One dollar closed at Rs 239.94 at the close of business on Thursday. An increase of 03 to 04 rupees is being recorded in the price of the dollar on a daily basis.

Reasons for Tremendous increase Value of Dollar against Rupee

On 19 July the value of the dollar increased by nearly 07 rupees against the rupee in just 01 day which is the highest 01 day increase in the country's history.

The dollar appreciation comes after Pakistan & the International Monetary Fund IMF reached a staff level agreement in mid July to revive the lending program.

Your story & question: The impact of the ongoing economic crisis & inflation in Pakistan on your life

Finance Minister  Mr Miftah Ismail has expressed the possibility of stability in the exchange rate in August but according to currency &  financial experts this stability can only come when financing from external sources to Pakistan starts which is completely closed at the moment. .

Experts also express concern over growing political crisis in Pakistan which according to them is proving negative for economic indicators &  is also affecting the value of the dollar & rupee.

According to him due to the rising value of the dollar in Pakistan a new wave of inflation will arise because Pakistan depends on imported goods for its energy & food needs which will-become more expensive due to the appreciation of the dollar.

How much has  value of the dollar increased so far ?

In the month of August last year price of 1 dollar was between 155 and 160 rupees.

You must have heard leaders of Tehreek-e-Insaf often saying that when the no confidence motion against their government was presented in month of March this year the dollar was at level of 178 rupees.

At the time of the establishment of the coalition government headed by Pakistan Muslim League Nun i.e. on April 11  price of one dollar was at 182 which continued to increase & the price of the dollar for fiscal year ended on June 30 was 205 rupees. reached the level of

A day before staff level agreement with the IMF the price of ⁰¹ dollar closed at 210 which decreased by one & a half rupees after the agreement. It closed around Rs.240.

Since the establishment of the new government the value of the dollar has increased by 60 rupees whereas during the 03 & a half year rule of  PTI Pakistan Tehreek-e-Insaf the increase in the price of the dollar was recorded by 55 rupees.

So the political opponents of the government coalition claim that Prime Minister Shehbaz Sharif is failing to stabilize the value of the rupee.

Why is the value of the dollar increasing despite  IMF agreement ?

Before the deal between Pakistan & the IMF was reached in mid July when the dollar was rising the reason for this was being attributed to  delay in the deal.

However despite the agreement reached in mid July the value of  dollar continues to rise which according to people associated with the currency market  & financial affairs experts had an effect of only 01 or 12 days & after that the dollar gained a Again the journey continued towards the upper level.

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Chairman of the Forex Association of Pakistan Malik Bustan told the British news that the effect of the IMF agreement lasted for half a day but after that when the Tehreek-e-Insaf won the by-election it increased the uncertainty in the country. gave birth & the rupee lost its value.

He said that from the situation it seems that more political tension will increase which will prove negative for the economy.