ISLAMABAD: The Rupee on Tuesday depreciated by 15 paisa against the US Dollar in the interbank trading and closed at Rs 281.91 against the previous day’s closing of Rs 281.76.
However, according to the Forex Association of Pakistan (FAP), the buying and selling rates of the dollar in the open market stood at Rs 282.25 and Rs 283.75, respectively.
The price of the Euro increased by Rs1 to close at Rs 317.63 against the last day’s closing of Rs 316.63, according to the State Bank of Pakistan (SBP).
The Japanese yen went up by 01 paisa and closed at Rs 1.95, whereas an increase of Rs 0.73 was witnessed in the exchange rate of the British Pound, which was traded at Rs 377.34 as compared to the last day’s closing of Rs 376.61.
The exchange rates of the Emirates Dirham and the Saudi Riyal increased by 04 and 02 paisa to close at Rs 76.75 and Rs 75.14, respectively.
DOLLAR AND OTHER CURRENCY RATES TODAY IN PAKISTAN
The US Dollar (USD) is the official currency of the United States and a cornerstone of the global financial system. Its history dates back to the Coinage Act of 1792, but its ascent to international prominence accelerated after World War I and was cemented by the Bretton Woods Agreement of 1944. This agreement pegged other major currencies to the US Dollar, which was in turn linked to gold, establishing the dollar as the primary reserve currency. While the direct gold peg was later abandoned, the dollar’s established position and the strength of the US economy and its financial markets have ensured its continued dominance in global finance.
The US Dollar plays an indispensable role in international trade due to its status as the world’s primary reserve currency. Central banks across the globe hold significant portions of their foreign exchange reserves in US Dollars, creating a consistent demand that supports its value and liquidity. Furthermore, a vast majority of international transactions, particularly for key commodities like oil and gold, are priced and settled in US Dollars. This widespread acceptance simplifies cross-border trade by reducing the need for multiple currency conversions, thereby lowering transaction costs and fostering greater efficiency in the global marketplace.
Beyond its transactional utility, the US Dollar is also considered a “safe haven” currency. During periods of economic uncertainty or geopolitical instability, investors tend to seek the relative security of dollar-denominated assets, further bolstering its demand and value. The deep and liquid financial markets within the United States also facilitate dollar-based transactions and investments, making it a preferred currency for international finance. This confluence of factors – reserve currency status, widespread acceptance, safe-haven appeal, and robust financial markets – underscores the critical and enduring role of the US Dollar in facilitating and shaping international trade.
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