Rupee is Stabilizing Against Dollar Following Devaluation

Pakistani currency is again becoming stronger after losing its value by Rs. 6.5 against dollar. Interbank market adjusted rupee’s value by 50 paisas. State Bank of Pakistan (SBP) has denyied any intervention in the market rates.

Today, after almost 7 days of decline, market is finally showing a reversal in value as one dollar is now trading at Rs. 110 after decline of 50 Paisa in the interbank market.

Chairman Forex Association of Pakistan, Malik Bostan, told ProPakistani that yesterday, SBP governor issued a statement where he hinted that if rupee devalues even further, SBP might be willing to take action. After this, rupee’s value started to recover, he added.

Interbank dealers told that SBP issued a verbal direction to settle the dollar at around Rs. 110. They claim that the market is still volatile. Due to this rupee has gained 50 paisa and has retained the same value today. Over the past two days, rupee has gained value of Rs. 1 against dollar.

Last Friday (December 8), dollar opened at Rs. 105.50 but since then interbank witnessed volatility and rupee’s value continued to decline. On December 14, dollar traded at Rs.112 but close at Rs. 111.

SBP spokesperson, Abid Qamar, told ProPakistani that the Central Bank is not intervening in the exchange rate and is letting the market adjusting the value of rupee.

“I think the market will absorb the initial anxiety. And settle the rupee price on its own.” Abid added.

He hoped that rupee’s exchange against dollar could be maintained on the current level to avoid any financial woes.

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