KARACHI: The rupee weakened against the dollar at Rs121.6/121.8 in the inter-bank market on Thursday compared with Wednesday’s close of Rs121.4/121.6. Contrary to the impression created after the previous round of depreciation, the Pakistani currency weakened further by 3.65% in its third round of rupee depreciation last week. Since December, the rupee has cumulatively shed close to 13% 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.
Published in The Express Tribune, June 22nd, 2018.