INSUBCONTINENT EXCLUSIVE:
Pak rupee slumps 3.8 pct against dollarKARACHI: The Pakistani rupee slumped 3.8 percent against the dollar on
Monday before slightly recovering in what appeared to be the third currency devaluation in seven months by the central bank, traders said,
as Pakistan faces a balance of payments crisis.At 0830 GMT, the rupee was at 119.25 per US dollar after opening at 115.63
Earlier in the day, it had traded close to 120 per dollar, currency traders said."It was expected
So far no intervention seen by State Bank
year, the fastest pace in more than a decade, but a widening of the current account deficit has fuelled speculation the country will need
its second International Monetary Fund (IMF) bailout since 2013.The current account deficit now stands at $14 billion, around 5.3 percent of
foreign currency reserves, which now stand at just over $10 billion, or two months worth of imports.Pakistan is currently in discussions
with China for loans to ease pressure on its foreign currency reserves.Over the weekend, the shortage of foreign currency widened the spread
at which the rupee is traded in the open market and the interbank market to 4 rupees.
