Karachi: Since December, the dollar has appreciated by almost 9% against the rupee, according to a news report. The State Bank of Pakistan (SBP) has highlighted that the drastic decrease in the rupee’s value is because of supply and demand dynamics of foreign exchange in the interbank market.
The SBP is going to let the market mechanisms adjust the exchange rate to continue with the imbalance and sustain a higher growth, even though it has promised to intervene in cases of speculative or momentary pressures. There has been a drastic widening of the current account deficit and without the SBP intervening, it is further expected to increase.
