Currency: Rupee strengthens against dollar

Published: October 12, 2017
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A currency dealer counts Pakistani rupees and U.S. dollars at his shop in Karachi. PHOTO: REUTERS

A currency dealer counts Pakistani rupees and U.S. dollars at his shop in Karachi. PHOTO: REUTERS

KARACHI: The rupee strengthened against the dollar at 105.35/105.55 in the inter-bank market on Wednesday compared to Tuesday’s close of 105.4/105.6.

The currency market has fluctuated regularly in recent months with hefty rises and falls on some occasions. In the long run, however, the rupee has stood firm after experiencing extensive volatility, when it weakened from around Rs98 to a dollar to above Rs103 in the wake of political impasse over alleged election rigging.

Currency: Rupee stable against dollar

The central bank has imposed 100% cash margin on the import of certain consumer goods to restrict the demand for US dollars. The rupee has been one of the best performing currencies in Asia for over three years despite the dollar’s sharp appreciation against other currencies.

However, the International Monetary Fund has repeatedly said that Pakistan’s rupee is overvalued by 5-20%. According to analysts, the artificial support for the rupee has adversely affected Pakistan’s exports.

Published in The Express Tribune, October 12th, 2017.

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