However, the International Monetary Fund has repeatedly said that Pakistan’s rupee is overvalued by 5-20%
KARACHI: The rupee strengthened against the dollar at 105.25/105.45 in the inter-bank market on Thursday compared to Wednesday’s close of 105.35/105.55.
Currency: Rupee remains stable against dollar
The currency market has fluctuated regularly in recent months with hefty rises and falls on some occasions. In the long run, however, the rupee has stood firm after experiencing extensive volatility, when it weakened from around Rs98 to a dollar to above Rs103 in the wake of political impasse over alleged election rigging.
The central bank has imposed 100% cash margin on the import of certain consumer goods to restrict the demand for US dollars. The rupee has been one of the best performing currencies in Asia for over three years despite the dollar’s sharp appreciation against other currencies.
Worst one-day fall for rupee since 2008 as dealers panic
However, the International Monetary Fund has repeatedly said that Pakistan’s rupee is overvalued by 5-20%. According to analysts, the artificial support for the rupee has adversely affected Pakistan’s exports.
Published in The Express Tribune, July 21st, 2017.
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