Currency: Rupee stable against dollar

KARACHI: The rupee remained stable against the dollar at 105.35/105.55 in the inter-bank market on Thursday compared with Wednesday’s close of 105.35/105.55. 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. The central bank imposed 100% cash margin in February 2017 on the import of certain consumer goods to restrict the demand for US dollars. Moreover, last week it slapped import duties on 356 items to contain widening trade deficit. 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 27^th, 2017.

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