1 Dollar to PKR in 2017: A Year of Currency Fluctuations ================================================================================ =
In 2017, the Pakistani rupee (PKR) experienced significant fluctuations against the US dollar (USD). This article will provide an overview of the exchange rate between the two currencies throughout the year, highlighting the highest and lowest points, and exploring the factors that influenced the exchange rate.
Highest Point: March 2017
In March 2017, the exchange rate reached its highest point, with 1 USD equivalent to approximately 104.75 PKR. This was largely due to the country's improving macroeconomic fundamentals, including a growing economy and increasing foreign exchange reserves.
Lowest Point: December 2017
However, by December 2017, the exchange rate had declined significantly, with 1 USD equivalent to around 110.50 PKR. This decline was attributed to various factors, including a widening trade deficit, higher oil prices, and a decline in foreign investment.
Average Exchange Rate in 2017
Throughout the year, the average exchange rate remained around 108 PKR per USD. This relatively stable average rate was influenced by the country's central bank, the State Bank of Pakistan, which implemented measures to maintain stability in the foreign exchange market.
Factors Influencing the Exchange Rate
Several factors contributed to the fluctuations in the exchange rate between the USD and PKR in 2017, including:
- Trade deficit: A widening trade deficit put pressure on the Pakistani rupee, causing it to depreciate against the US dollar.
- Oil prices: An increase in global oil prices led to higher import costs, which negatively impacted the country's balance of payments and Exchange rate.
- Foreign investment: A decline in foreign investment flows into the country reduced the supply of dollars, causing the rupee to weaken.
- Monetary policy: The State Bank of Pakistan's monetary policy decisions, including changes to interest rates, also influenced the exchange rate.
Conclusion
In conclusion, the exchange rate between the US dollar and Pakistani rupee in 2017 was marked by significant fluctuations, with the highest point in March and the lowest point in December. The average exchange rate remained relatively stable, around 108 PKR per USD, despite various factors influencing the market. Understanding these factors is crucial for businesses, investors, and individuals looking to navigate the complex world of foreign exchange.
