Rupee Bounced back After Hitting New Record Low against US Dollar

The US dollar returned back to Rs 144 after reaching an all-time high at Rs 146.25 with an increase of Rs 2.25 during the day in the open market on Wednesday. According to currency dealers, dollar was trading at Rs 146 in the open market, whereas in the interbank market it remained stable around Rs 141.39.

The increase comes after Pakistan’s agreement with the International Monetary Fund (IMF) securing a $6 billion bailout package on Sunday. At the start of the week, Pakistani stocks also fell as investors and analysts expressed doubt over the reported conditions of the deal.

Related: 2018 The Year of Price Hikes

The rising value of US Dollar against the Pak Rupee is expected to affect all major sectors including the automobile industry. Since December 2017 onwards, car prices have already gone up with an increase of up to 200,000 on each local assembled model. Due to constantly depreciating Rupee value, the year 2018 alone witnessed up to 5 price revisions by automakers operating in Pakistan.

Since the beginning of 2019 as well, Suzuki, Toyota and Honda have revised their products prices a couple of times already. If Rupee keeps on declining, auto consumers of Pakistan might get hit by another price revision quite likely in near future.

Notify of
Inline Feedbacks
View all comments