LAHORE - Dollar at inter-bank and open markets Tuesday reached all-time high level as Pakistani rupee dipped sharply against the dollar. Sources in banking sector said that the dollar-rupee exchange rate is now moving towards a flexible regime, as the continuous depreciation in the rupee is market-determinant. He said overvalued exchange rate discouraged exports, encouraged imports and kept the rupee cost of foreign debt servicing high. They said the rupee devaluation is in line with the demand of IMF, which has always advocated a flexible regime. The SBP stated that the exchange rate will continue to reflect demand and supply conditions, adding that it stands to intervene in case speculative or monetary pressures emerge.

Source: The Nation December 13, 2017 02:01 UTC