Currency: Rupee strengthens against dollar
SBP maintains that the slide in rupee’s value is due to supply and demand dynamics of forex
SBP maintains that the slide in rupee’s value is due to supply and demand dynamics of forex PHOTO: REUTERS
KARACHI:
The rupee strengthened against the dollar at Rs115.2/115.4 in the inter-bank market on Monday compared with Friday’s close of Rs115.25/115.45. Since December, the rupee has cumulatively shed close to 9% of its value after the central bank reportedly abstained from intervening in response to the pressure due to a widening current account deficit. The State Bank of Pakistan has maintained that the slide in the rupee’s value is due to supply and demand dynamics of foreign exchange in the inter-bank market. While it has promised prompt intervention in case of speculative or momentary pressures, the central bank will sit on the fence and let “market-driven adjustment in the exchange rate to continue to contain the imbalance in the external account and sustain a higher growth trajectory”, according to a press statement.
Published in The Express Tribune, April 10th, 2018.
The rupee strengthened against the dollar at Rs115.2/115.4 in the inter-bank market on Monday compared with Friday’s close of Rs115.25/115.45. Since December, the rupee has cumulatively shed close to 9% of its value after the central bank reportedly abstained from intervening in response to the pressure due to a widening current account deficit. The State Bank of Pakistan has maintained that the slide in the rupee’s value is due to supply and demand dynamics of foreign exchange in the inter-bank market. While it has promised prompt intervention in case of speculative or momentary pressures, the central bank will sit on the fence and let “market-driven adjustment in the exchange rate to continue to contain the imbalance in the external account and sustain a higher growth trajectory”, according to a press statement.
Published in The Express Tribune, April 10th, 2018.