The rupee stayed steady against the dollar at PKR ~124 in the inter-bank market on Monday compared with Friday’s close. Following reports that china has agreed to instantly lend $2 billion to Pakistan, the rupee has valued against the US dollar. Cumulatively, it has improved 3.36% from PKR 128.5 in the past few days. Earlier to this, it had lost 22% of value since December 2017 after the central bank apparently curbed from intervening in response to the pressure due to a broadening current account deficit. The State Bank of Pakistan has stated that the slide in the rupee’s value is due to supply and demand underlying forces of foreign exchange in the inter-bank market. The Central bank has also promised quick investment in case of speculative or temporary pressures, the central bank will watch on the boundary and let “market-driven regulation in the exchange rate to continue to cover the imbalance in the external account and sustain a higher growth course”.

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