Currency: Rupee strengthens against dollar


KARACHI: The rupee strengthened against the dollar at Rs110.2/110.4 in the inter-bank market on Tuesday compared with Monday’s close of Rs110.3/110.5. In the last few weeks, the rupee has cumulatively shed over 4% of its value after the central bank reportedly abstained from intervening in response to the pressure being built due to a widening current account deficit.

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. While it has promised prompt intervention in case of speculative or momentary pressures, the central bank will sit on the fence and let “market-driven adjustment in the exchange rate to continue to contain the imbalance in the external account and sustain a higher growth trajectory”, according to a recent press statement. Market rumours suggest the move is part of IMF’s conditions for another bailout package.  

Published in The Express Tribune, January 3rd, 2018.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.

Market rumours suggest the move is part of IMF’s conditions for another bailout package

  • Multi-billion rupee scam: SC dismisses ad agency owner's bail application

    Also dismisses Sharjeel Memon's application, directs him to seek after-arrest bail from SHC

  • Over 6,000 FATA people martyred in war against terrorism, lawmakers told

    Nearly 7,000 have been injured since 2001, almost Rs4 billion paid to families of martyrs so far

    More in Business


    Original news : https://tribune.com.pk/story/1599238/2-currency-rupee-strengthens-dollar-35/