Inter-Bank Market: Rupee weakens against dollar

KARACHI: The rupee weakened against the dollar at Rs137.53/Rs137.71 in the inter-bank market on Tuesday compared with Monday’s close of Rs137.51/Rs137.69, according to the State Bank of Pakistan (SBP). Last week, the rupee fell to an all-time low at Rs144 against the dollar in intra-day trading before recovering to 139.05 in the sixth round of devaluation since December 2017. Cumulatively, the rupee has lost 31.8% of its value in the last 12 months. Earlier in October, a slump in the value of the rupee came after the government decided to knock at the International Monetary Fund’s (IMF) door to avoid default on import payments and debt repayments. The central bank said economic data showed that the positive impact of recent stabilisation measures had started to emerge gradually. “Particularly, the current account deficit is showing early signs of improvement,” said the SBP. Earlier, the central bank said it “will continue to closely monitor the situation and stands ready to intervene in case of any unwarranted volatility in the foreign exchange market.”

Published in The Express Tribune, December 5^th, 2018.

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