Karachi July 19 2022: The recent movement in the Rupee is a feature of a market-determined exchange rate system says State Bank of Pakistan.
Under this system, the current account position, relevant news items, and domestic uncertainty together determine daily currency fluctuations.
Recent Rupee depreciation against the US$ is also in large part a global phenomenon. Globally, the US$ has surged by 12% in the last 6 months to a 20-year high, as the Fed has aggressively raised interest rates in response to rising inflation.
Like most advanced and emerging market currencies across the world, the Rupee has depreciated against the US$ since Dec 21. It has depreciated by 18% over this period.
Like most advanced and emerging market currencies across the world, the Rupee has depreciated against the US$ since Dec 21. It has depreciated by 18% over this period.
