KARACHI: The rupee strengthened against the dollar at Rs133.2/133.4 in the inter-bank market on Wednesday compared with Tuesday’s close of Rs133.25/133.75. A slump in the value of the rupee on Tuesday 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 central bank has said that the drop of 7.5% in the rupee’s value on Tuesday broadly reflected the current account dynamics and the demand-supply gap in the foreign exchange market.
Published in The Express Tribune, October 11th, 2018.