The Pakistani rupee in the early trade hours on Monday lost its strength by 5 paisa and hit Rs155.95 against the U.S. dollar in the interbank market
KARACHI (Pakistan Point News / Online - 21st October, 2019) The Pakistani rupee in the early trade hours on Monday lost its strength by 5 paisa and hit Rs155.95 against the U.S. dollar in the interbank market.The local currency closed at Rs155.90 against the greenback on a positive note. In the open market, the rupee appreciated by 20 paisa and closed at Rs156.10 against the dollar with slight fluctuation in the whole week.The World Bank forecasted Pakistan's economic growth to slow down for the next two years as it faces yet another macroeconomic crisis due to massive twin deficits and low foreign reserves.
Despite significant devaluation, the WB still sees the rupee overvalued by the end of September by approximately 4.8%.In the last two months, the local currency was observed to significantly recover against the greenback in both interbank and open markets.Earlier, analysts had expressed fear that the intense ongoing trade war between the United States and China would result in fluctuation of the U.S. dollar in the local market, and the value of the Pakistani rupee would stabilise depending on the measures taken by the government with appropriate economic policies.
Currency traders were of the view that the increasing inflows of remittance have supported the local rupee in the market.Previously, the rupee was observed to cumulatively depreciate against the greenback, which in turn, had resulted in increased prices of goods and hardships for the general public.The SBP has let the rupee depreciate significantly in the inter-bank market after finalising an agreement with the International Monetary Fund (IMF) for a loan programme on May 12.