Rupee weakens against dollar  

SBP has maintained that the slide in the rupee’s value is due to supply and demand dynamics of foreign exchange


Our Correspondent July 21, 2018
Since December, the rupee has cumulatively close to 22% of its value. PHOTO:FILE

KARACHI: The rupee weakened against the dollar to Rs128.4/128.6 in the inter-bank market on Friday compared with Thursday’s close of Rs128.30/128.50. Contrary to the impression created after the previous round of depreciation, the Pakistani currency weakened further by 5.3% in its fourth round on Monday. Since December, the rupee has cumulatively close to 22% 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, July 21st, 2018.

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COMMENTS (1)

cautious | 5 years ago | Reply Remember the value of the rupee is also dependent on the value of the Dollar. The USA economy is booming right now and so is the value of the dollar - even if Pakistan's economy were doing better it's likely the rupee might be under stress. With that said - Pakistan has overborrowed and the economy isn't doing as well as political elite had promised -- further depreciation is likely.
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