Rupee weakens against dollar

KARACHI: The rupee weakened against the dollar at Rs141.2/Rs141.7 in the inter-bank market on Tuesday compared with Monday’s close of Rs141.1/Rs141.6, according to forex.pk. In March, the State Bank of Pakistan (SBP) let the rupee depreciate in the inter-bank market ahead of an expected agreement with the International Monetary Fund (IMF) for a long-term loan programme. The IMF has asked Pakistan to end state control over the rupee and let the currency move freely to find its equilibrium against the US dollar and other major world currencies. Also, the World Bank, which finances some of the infrastructure and social safety net projects in Pakistan, has supported the idea of leaving the rupee free from state control in a bid to give much-needed boost to exports and fix a faltering economy. Cumulatively, the rupee has shed 33.4% of its value since December 2017. 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, April 10^th, 2019.

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