Business

Rupee strengthens against dollar

Since December, the rupee has cumulatively shed close to 13% of its value

Our Correspondent June 26, 2018

Contrary to the impression created after the previous round of devaluation, the Pakistani currency weakened further by 3.65% in its third round earlier this month. PHOTO:EXPRESS

KARACHI: The rupee strengthened against the dollar at Rs121.4/121.6 in the inter-bank market on Monday compared with Friday’s close of Rs121.45/121.65. Contrary to the impression created after the previous round of devaluation, the Pakistani currency weakened further by 3.65% in its third round earlier this month. 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. 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, June 26^th, 2018.

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