Hello everyone, how are you doing and how is your life going? I hope you are all well and having a good time with your loved ones. Today's post will go over the dollar rate versus the PKR, as well as the overall impact of the dollar on the crypto market. As we all know, BTC is the cryptocurrency king with the highest market capitalization. Similarly, the dollar is regarded as the king of the FIAT against all currencies except a few. Almost everywhere in the world, the dollar is in high demand and is used as a currency exchange.
IMPACT OF DOLLAR RATE ON CRYPTOMARKET AND STOCK MARKET
The dollar has a significant impact on the cryptomarket, with the FED's results being one of the most important factors. When FED rates rise, the market drops, and when rates stabilise, BTC begins to pump. Another effect it has on the rate of the dollar is that when the dollar rate rises, BTC falls, and vice versa when the dollar rate falls, which has a significant impact on the cryptoworld. USDT is a stable coin that is pegged to the US dollar and is expected to remain at $1.
When comparing my country's currency to US dollars, a few weeks ago the dollar was on a great bull run, with $1 equaling 251PKR. The highest dollar-to-PKR exchange rate in history has had a negative impact on the country, as we will see after the dollar's bull run, goods and other utility items, such as gasoline, will become more expensive. The price of flour, rice, oil, and other food items will rise, causing inconvenience for citizens. The main thing that will have an impact is the country's stock market, which will lose market points. All of these are the negative consequences of a rising US dollar.
THE DOLLAR RATE FALLS AGAINST THE PKR.
As the price of USD rises, the crypto market suffers, as citizens will not buy USDT against PKR at such a high rate. As a result, the cryptocurrency market begins to fall until the dollar rate is corrected. This is because investors and traders will wait for the USDT rate to fall before buying USDT. Two weeks ago, the USDT rate against the PKR was only 251, which was a source of concern for traders and investors. The government was also under pressure regarding the dollar rate, so they called a meeting to discuss it. However, as ISHAQ DAAR enters the picture, the dollar rate begins to fall, which is good news.
The dollar rate has continued to fall, and the current rate of the dollar against the Pakistani rupee is 232, down from 251. (AT THE TIME OF WRITING). We see positive movements in the country again, such as the stock market turning green and volume increasing, and traders/investors buying USDT because they believe this rate is the best. Some are buying USDT in anticipation of the next bull run, but no one knows what the next price will be. Since a few weeks, the stock market has been on fire, with higher volumes and more buying and selling. The previously raised rates of goods have been reduced to normal levels.
WHO BENEFITS WHEN THE DOLLAR RATE INCREASES?
As we all know, online work is becoming increasingly popular. Many people are involved in online work, such as the HIVE platform, freelancing, Fiver, online games, and other online platforms that have piqued the interest of users. People are earning good money from online work and receiving their pay in US dollars. This is how people who work online benefit from the rising dollar rate. Simply put, they convert dollars to Pakistani rupees, and in exchange, they receive more PKRs. These are the people who rejoice when the dollar rate rises; the same is true for HIVE, and we rejoice when the dollar rate rises.
WHAT ARE THE CAUSES OF A CURRENCY RATE INCREASE?
There are numerous reasons for a currency's rate to rise, one of which is the citizens' saving of that currency. Assume some wealthy individuals begin collecting US dollars; as a result, dollars become scarce in the market, causing the dollar's value to rise. When they see that the rate has risen, they convert the dollar back to PKR, reverting the dollar rate to its original position. This mechanism is considered illegal by the government, and anyone caught using it will face severe penalties.
These are my thoughts on the dollar and its impact on a country. I've shared my knowledge and thoughts with you, and I hope this post was useful in some way. If you find the post informative, please reblog it so that it reaches a large number of people and they can benefit from it. Also, remember to do upvtoe, which will help me financially and grow my account. Please feel free to ask any question, and I will do my best to respond.
- PICTURES ARE TAKEN FROM CANVA AND EDITED IN CANVA.
DISCLAIMER
Please keep in mind that I am not a financial advisor. Never, ever take anything I say as financial advice. Conduct your own research. Before making any investment decisions, consult with a professional investment advisor! My posts are strictly for entertainment purposes!!
Thank you!
Best Wishes.