Pakistani Rupee began the day with a significant decline in its value as prices went from 105.55 to currently trading at 108.50 /110 against the US Dollar.
The PKR depreciated by 2.8% within the first 30 minutes of trading. The fluctuation has been abrupt and is followed by a United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) report citing concerns about Pakistan’s Exchange Rate.
UN Report warned in the periodic Economic Survey regarding the currency risk to the economy of Pakistan. “If US Dollar appreciates against most major currencies … Pakistan’s policy approach would become inadequate”.
State Bank Pakistan’s Real Effective Exchange Rate for the month of October was at 123.48 Rupees.
The report also acknowledges the economic development in Pakistan, estimating “growth outlook is projected to trend up to 5.2-5.4 per cent in both 2017 and 2018”.
The Exchange Rate has been headlines in the recent few years as major international agencies have warned Pakistan of the uncertain Rupee Dollar parity.
However, State Bank of Pakistan has not released any statement for clarification.