The Us Dollar on Monday continued its upward trend against the Pakistani Rupee and gained 30 paisas to reach at Rs285, posing a new challenges to already struggling economy. In the open market, the US dollar is being sold at Rs311. Just two weeks ago, Pakistani rupee had experienced a sharp decline, hitting a record low of 298 against the American currency due to political tumult in the country. On Monday, Finance Minister Ishaq Dar addressing a Pakistan’s First International Conference on Islamic Capital Markets assured the nation that government has been trying to fix the economy. The conference was jointly organized by the SECP and AAOIFI.

Asian markets rose Monday on news that President Joe Biden and House Speaker Kevin McCarthy have reached a deal to lift the US debt ceiling and avoid a calamitous default. After weeks of wrangling, the two announced that an agreement had finally been reached and urged lawmakers on both sides of the aisle to vote for it before the government runs out of cash on June 5. However, there is some nervousness on trading floors as the bill contains plenty of elements that are likely to anger Democrats and Republicans alike.

For now, dealers are upbeat as the breakthrough lifts the threat of a debt default by the United States that economists warn could hammer the global economy and cause market turmoil. The bill will suspend the debt ceiling until January 1, 2025 and place curbs on federal spending that will please some Republicans, but it does not deliver the big cuts right-wingers wanted and progressive Democrats would have balked at.

“The agreement prevents the worst possible crisis,” Biden said at the White House on Sunday. “Which means no one got everything they want.” “But that’s the responsibility of governing. I strongly urge both chambers to pass that agreement.” He added: “It takes the threat of a catastrophic default off the table, protects our hard-earned and historic economic recovery and… represents a compromise that means no one got everything they want.”

Credit: Independent News Pakistan-INP