In an absurd development, the dollar witnessed an alarming drop in value compared to the Pakistani rupee late Tuesday night, leaving Pakistanis confused. However, it turned out that it was a technical glitch on Google.
According to the details, the dollar unexpectedly dropped to Rs186.73 which surprised many, especially since the local currency hadn’t experienced a significant rebound recently.
The reason behind the sharp decrease in currency exchange rates was uncovered to be a technical glitch in Google’s search engine, resulting in a significant drop in the rates.
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In the interbank market on June 6 (Tuesday), the Pakistani rupee closed at 286.56 against the US dollar, while it remained above Rs300 in the open market.
After the glitch was caught, it was fixed, with the rates going back to Rs286.72.
— Shama Junejo (@ShamaJunejo) June 6, 2023
@Google your search engine is showing currency exchange rates have fallen. The USD to PKR rate was 286 and suddenly is 186. The CAD to PKR rate shows 209 on Western Union but on Google shows 136. Im a bit confused 😵💫
— Sadeed Khwaja (@sadeedkhwaja) June 6, 2023
— Ali Iqbal (@aliiqbal146) June 6, 2023
— Syed Wali Hyder (@SyedWaliHyder2) June 7, 2023
The Pakistani Rupee has been constantly depreciating against the US Dollar (USD) as the country struggles with economic uncertainty and depleting foreign exchange reserves.
Currently, the foreign reserves held by the State Bank of Pakistan (SBP) are almost $4 billion, while total foreign exchange reserves held by the country are just below $10 billion.
Last month, the Pakistani rupee experienced a sharp decline, hitting a record low of 298 against the US dollar due to political tumult in the country. The political turmoil has had a significant impact on market sentiment, causing the rupee to reach a record low.
Furthermore, the demand-supply gap of the US dollar in the interbank market has widened, causing the rupee’s devaluation. Exporters have stopped selling US currency on speculations that the rupee would depreciate further versus the greenback. In contrast, importers are seen rushing to buy dollars, which has led to a shortage of dollars in the interbank market.
Additionally, the delays in a deal between Pakistan and the International Monetary Fund (IMF) has caused the rupee to plummet against the dollar. The IMF funding is critical for the country to unlock other bilateral and multilateral external financing. The delays have caused uncertainty in the currency market.