Rupee strengthens against dollar

KARACHI: The rupee strengthened against the dollar at Rs123.3/123.5 in the inter-bank market on Thursday compared with Wednesday’s close of Rs123.6/123.8, according to the central bank website. Following reports that China had agreed to immediately lend $2 billion to Pakistan, the rupee had appreciated against the US dollar. Cumulatively, it has recovered 3.4% from Rs128.5 in recent days. Prior to this, it had lost 22% of 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 17^th, 2018.

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