PKR US$ exchange rate adjusts 3.1pc in interbank market

KARACHI: The PKR-US$ exchange rate in the interbank market on Wednesday depreciated by 3.1 percent from Rs 104.90 per US$ yesterday to Rs 108.25 per US$.

While almost all macroeconomic indicators have been showing encouraging picture, such as decade-high real GDP growth, increase in investment, credit expansion to private sector, and subdued inflation; the deficit in the external account has been rising for some time.

Accordingly, the exchange rate adjusted in the market and State Bank of Pakistan (SBP) is of the view that this depreciation in the exchange rate will address the emerging imbalance in the external account and strengthen the growth prospects of the country.

SBP also believes that the current exchange rate is broadly aligned with the economic fundamentals.

SBP will continue to closely monitor the developments in the foreign exchange markets and stands ready to ensure stability in the financial markets, said a statement of the SBP here on Wednesday.