The Pakistani Rupee’s decline for the seventh consecutive session against the US Dollar indicates ongoing pressure on the currency. Such declines often result from various economic factors, including trade imbalances, inflation, and external pressures. Investors and traders may be concerned about the stability of the currency, leading to increased demand for the US Dollar.
According to the State Bank of Pakistan (SBP), the Pakistani Rupee depreciated further against the US Dollar, settling at 281.47, marking a decrease of Re0.52. This ongoing depreciation is a continuation of the currency’s recent weakness.
The State Bank of Pakistan’s Monetary Policy Committee (MPC) chose to maintain the key policy rate at 22% in alignment with the general market consensus. This decision signifies the central bank’s commitment to managing economic stability and inflation control through its interest rate policy.
The committee observed that inflation increased in September 2023, as anticipated. However, they expect it to decrease in October and continue to decline, especially in the latter half of the fiscal year, as mentioned in their press release.
