1 INR to PKR in 2018: A Year of Currency Fluctuations
Introduction
The Indian Rupee (INR) and the Pakistani Rupee (PKR) are two major currencies in the Indian subcontinent. In 2018, the exchange rate between the two currencies was marked by significant fluctuations, affecting trade and commerce between the two nations. In this article, we will explore the trends and factors that influenced the exchange rate of 1 INR to PKR in 2018.
Historical Exchange Rate Data
According to historical exchange rate data, the average exchange rate of 1 INR to PKR in 2018 was around 1.45 PKR. Throughout the year, the exchange rate fluctuated within a range of 1.30 PKR to 1.60 PKR per INR.
Factors Affecting Exchange Rate
Several factors contributed to the fluctuations in the exchange rate of 1 INR to PKR in 2018:
Global Economic Trends
The global economy experienced a slowdown in 2018, which led to a decline in international trade and investment. This had a ripple effect on the currencies of both India and Pakistan, causing fluctuations in the exchange rate.
Monetary Policy Decisions
The Reserve Bank of India (RBI) and the State Bank of Pakistan (SBP) made several monetary policy decisions in 2018, which influenced the exchange rate. The RBI raised interest rates in June 2018 to combat inflation, while the SBP reduced interest rates in November 2018 to stimulate economic growth.
Geopolitical Tensions
Geopolitical tensions between India and Pakistan escalated in 2018, particularly after the Pulwama attack in February 2018. The tensions led to a decline in investor confidence, causing a depreciation in the value of the PKR against the INR.
Impact on Trade and Commerce
The fluctuations in the exchange rate of 1 INR to PKR in 2018 had significant implications for trade and commerce between India and Pakistan. The depreciation of the PKR against the INR made Pakistani exports more competitive, but it also increased the cost of imports from India. This had a ripple effect on the economies of both countries, affecting the prices of goods and services.
Conclusion
In conclusion, the exchange rate of 1 INR to PKR in 2018 was marked by significant fluctuations, influenced by a range of factors. Understanding these factors is crucial for businesses and investors operating in the region, as it can help them make informed decisions about investments and trade.
