Factors that affect the Pakistani currency (Rupee) and US dollar exchange rate include inflation, interest rates, speculation, balance of payments/current account deficits, and public debt. Higher inflation in Pakistan compared to the US would decrease the value of the Rupee. Higher interest rates in the US would increase demand for the dollar. Speculation on currency movements and changes in commodity prices can also influence exchange rates. Large current account deficits that are not financed can lead to currency depreciation. High public debt and fears of default can cause investors to sell bonds in that currency and decrease its value.