Pakistan pumps in $6 mn to hold sliding rupeeMay 7th, 2008 - 10:29 pm ICT by admin
Islamabad, May 7 (Xinhua) Pakistan’s central bank said Wednesday it has pumped $6 million in the market through the exchange companies in a bid to hold the sinking rupee. Syed Wasimuddin, spokesman of the State Bank of Pakistan (SBP), said that $6 million were provided to the 24 ‘A’ class exchange companies Monday and Tuesday.
The Pakistani rupee fell 1.6 percent Wednesday to a record low and has now depreciated 7.9 percent since the beginning of the year.
The rupee closed at 66.45/55 to the dollar.
Analysts say the rupee depreciation is mostly due to galloping imports and diminishing flow of foreign funds.