The US dollar which started shedding its value before Eid holidays, maintained its downward trend on the first day of business activity after a break of five days today (Wednesday) as the greenback lost 41 paisas in interbank trading. According to the forex dealers, at the outset of the market activity in the morning, the American currency was depreciated by 41 paisas and was now being exchanged for Rs207.50 The greenback delivered some heavy blows to the Pakistani currency during the first week of this month but towards the end, it lost eight paisas in its value on Thursday (July 7) and settled for Rs207.91.In order to contain inflation and halt the depreciation of Pakistani rupee, the State Bank on last Thursday (July 7) increased the key interest rate by 125 basis points, taking it to 15% amid expectation of further tightening due to a higher inflation outlook.

In an interview with Bloomberg, SBP Acting Governor Murtaza Syed said that with inflation at multi-year highs around the world,  Pakistan was taking timely, bold and decisive steps to cool its economy and prevent a de-anchoring of inflation expectations. It was observed that after the announcement of the Memorandum of Economic and Financial Policies (MEFP) received from IMF for the combined 7th and 8th reviews on June 28, the rupee started its upward trajectory against the greenback in the interbank market.

Credit:
Independent News Pakistan-INP