Rupee strengthens against dollar

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

KARACHI: The rupee strengthened against the dollar at Rs123.9/124.1 in the inter-bank market on Wednesday compared with Tuesday’s close of Rs124.15/124.55. Following reports that China had agreed to immediately lend $2 billion to Pakistan, the rupee has appreciated against the US dollar. Cumulatively, it has recovered 3.36% in the past seven days from Rs128.5 on Monday last week. Prior to this, it had lost 22% of its value since December 2017 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, August 2^nd, 2018.

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