Karachi: At the open market, the Pakistani rupee strengthens by PKR 9 in open market, during the last six days, stated a news report. The Pakistani rupee weakened by 5.7% during its fourth round and since December last year, has lost value by 22%. However, the rupee has now started to appreciate, after depreciating to as low as PKR 130 on 23rd July 2018.
The State Bank of Pakistan has decided not to intervene in setting the value of the currency and in preventing the widening of the current account deficit. Instead, it has decided to let the market forces determine the value. The massive fall in the value of the rupee was because of a high supply of the Pakistani rupee in relation to the demand for the US dollar, which had increased drastically over the last few months. This dollar-rupee stability is a positive sign.
According to Forex Association of Pakistan President Malik Bosan, after elections, people predicted stable conditions in the market because of which the currency market recorded some activity. Bosan expects the dollar to further go down if activity remains intact.