Rupee strengthens against dollar

In early September, the rupee became the worst-performing currency in Asia


Our Correspondent September 04, 2021
The finance ministry said that the exchange value of the rupee was maintained at an artificially high level in the past, which triggered the balance of payments crisis. PHOTO: REUTERS

ISLAMABAD:

The rupee strengthened against the US dollar at Rs166.9 in the inter-bank market on Friday compared with Thursday’s close of Rs166.98, according to the State Bank of Pakistan (SBP).

Earlier, the SBP let the rupee depreciate massively in the inter-bank market after finalisation of an agreement with the International Monetary Fund (IMF) for a loan programme on May 12, 2019.

The IMF has asked Pakistan to end state control of the rupee and let the currency move freely to find its equilibrium against the US dollar and other major world currencies.

Read Rupee touches 11-month low level

In early September 2021, the Pakistani rupee became the worst-performing currency in Asia in a basket of 13 currencies as it fell to a 13-month low against the US dollar in the wake of a significant surge in demand for the greenback to make payments for soaring imports.

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 a much-needed boost to exports and fix a faltering economy.

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