Rupee depreciation

Dawn | Sep 7, 2021 at 9:44 AM
  • THE recent exchange rate volatility, which saw the rupee drop to a multi-month low of 167.23 to a dollar on Monday, is a natural response of the home currency to surging trade deficit, rising inflation and negative interest rates.
  • The 144pc year-on-year surge in trade deficit in August to the highest-ever level of Rs4.23bn has put new pressure on the rupee.
  • Sadly, the current growth spurt being touted is no different to the one under the previous PML-N set-up in that it is also being financed through expansive fiscal and monetary policies and short-term expensive borrowings without implementing productivity reforms.