The Rupee went about its third depreciation today after previous depreciations of 5 percent were observed during December, 2017 and March, 2018.
Dollar is now moving between the 119.50 and 120 band in the interbank market. Furthermore, since Friday the rupee depreciated by a cumulative 3.8 percent.
Mr. Nauman at Foundation Securities mentions that “though headline inflation has remained tamed in the last two episodes, we see third episode fueling inflation in the economy.”
“We do believe the market to experience a consolidation phase as it adjusts to new macro reality. Regulated FIIs funds could be a sliver-lining, but we reiterate they are largely hinged on improved macro picture”, says Mr. Nauman.
The trading in the open market has relatively halted as buyers are willing to buy at 121, however, with no dollar available in the market.
State Bank of Pakistan has not released any statement to the ongoing movement in the currency market.
Rupee since December, 2017 depreciated by almost 13.2 percent.