Rupee gains Rs3.38 against US Dollar in interbank market
- By Web Desk -
- Apr 17, 2020
KARACHI: The Pakistani rupee rose by Rs3.38 against the US dollar in the interbank market on Friday, ARY News reported.
According to forex dealers, the rupee appreciated by three rupees and traded at Rs163.50.
The US dollar last week hit an all-time high against the Pakistani rupee in the interbank market and closed at Rs167.90.
The value of dollar soared by Rs9.23 during the last 15 days.
The State Bank of Pakistan (SBP) on Thursday further slashed its key interest rate by two per cent (200 basis points) to nine per cent in wake of the worsening outlook for global and domestic economic activity due to the coronavirus pandemic.
Over the past one month, the central bank’s key interest rate has seen a cumulative reduction of 4.25 per cent.
“Since the last MPC [Monetary Policy Committee] meeting, the global and domestic outlook has further deteriorated,” a statement issued by SBP noted. “The world economy is expected to enter into the sharpest downturn since the Great Depression, contracting by as much as 3 percent in 2020, according to projections released this week by the IMF.”
“This is a much deeper recession than the 0.07 percent contraction during the global financial crisis in 2009.”
While there is exceptionally high uncertainty about the severity and duration of the Coronavirus shock, the developments discussed above imply further downward revision in the outlook for growth and inflation, the central bank said.