Rupee Against Dollar Today
Rupee Against Dollar Today: The rupee remained stable against the dollar at Rs.115.5/115.7 in the inter-bank market on Monday compared with Friday’s close of Rs.115.5/115.7. Since December, the rupee has cumulatively shed close to 9% of its value after the central bank reportedly abstained from intervening in response to the pressure due to a widening current account deficit.
The State Bank of Pakistan has maintained that the slide in the rupee’s value is due to supply and demand dynamics of foreign exchange in the inter-bank market. While it has promised prompt intervention in case of speculative or momentary pressures, the SBP will sit on the hurdle and let “market-driven adjustment in the exchange rate to continue to contain the imbalance in the external account and sustain a higher growth trajectory”, according to a press statement.
Moody’s Recent Statement Dollar Will Go Upto Rs.125
Amid risks associated with servicing external debt due to devaluation of currency, Moody’s Investors Service, one of top three global credit rating agencies, has forecasted that Pakistan’s rupee could shed value by another 7.75% and its worth may go as low as Rs.125 to the dollar by June next year.
It has forecasted that as against Rs.116 to a dollar value by June this year, the nominal exchange rate could be Rs.125 to a dollar by June 2019, implying a devaluation of 7.75%. The local currency has remained under pressure in recent months due to mounting external sector financing requirements. The government has already devalued the currency by over 10% from December to March of this fiscal year.
Moody’s has taken a negative view of Pakistan’s external sector but remained upbeat about economic growth prospects due to the China-Pakistan Economic Corridor (CPEC).
Moody’s said that successful implementation of the CPEC project has the potential to transform the Pakistani economy by removing infrastructure bottlenecks and stimulating both foreign and domestic investment.
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