KARACHI: During intraday trade on Tuesday, the exchange rate between the US dollar and the Pakistani rupee went down by 34 paise.
The dollar was traded for around Rs200 on the second business day of the week, compared to Rs200.60 at the end of the previous business day.
The State Bank of Pakistan (SBP) announced on Monday that it would raise its benchmark policy rate by 150 basis points to try to stop inflation from getting out of hand.
This action, along with the much-needed consolidation of the government’s finances, should help bring down demand to a more sustainable level while keeping inflation expectations stable and keeping risks to the stability of the economy in check.
