Rupee remains stable despite regional war pressures

KARACHI: Despite 19 days of war in the Middle East, Pakistan’s exchange rate remained stable, encouraging stakeholders, including the State Bank of Pakistan (SBP) and the government.

The exchange rate has largely remained stable during the current fiscal year, and predictions of destabilisation proved unfounded despite the prolonged conflict.

This stability comes as regional currencies weakened; the Indian rupee depreciated by up to five per cent from Rs88 to Rs92 against the US dollar during the war, while fears of further depreciation persist.

Financial sector experts believe the exchange rate is being managed to some extent, though they caution that continued war could still pose risks.

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“This is highly appreciable and extremely supportive for the country that, despite almost three weeks of war, the exchange rate is under control,” said Zafar Paracha, a currency dealer.

Exporters, however, fear that the ongoing Middle East conflict could reduce exports to the region, while production........

© Dawn Business