Rupee weakens against dollar

KARACHI: The rupee weakened against the dollar at Rs133.25/133.75 in the inter-bank market on Tuesday compared with Monday’s close of Rs124.1/124.3. The slump came a day after the government decided to knock at the International Monetary Fund’s (IMF) door to avoid default on import payments and debt repayments. This was the fifth round of massive depreciation of the Pakistani currency since December 2017 to tame aggressive demand for dollars in a faltering economy. Cumulatively, the rupee has dropped by 26.67% in the last 10 months. 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, October 10^th, 2018.

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