This indicated the markets’ recognition that Mr Dar’s main claim to fame was the defense of the rupee, and that he would take steps to bring it down. However, the rupee started rising. This cannot be reconciled to Mr Dar’s statement that a fair value is around 200. However, the market seems to have started rebounding from Rs 220, which indicates that Mr Dar’s analysis is incorrect. Mr Dar must resist the temptation of possibly using the country’s already meagre reserves.

Source: Pakistan Today October 24, 2022 01:26 UTC