PKR: Under Siege

July 2008 | Currency Forecast

The rupee has been subject to sharp volatility over recent months on the back of deteriorating fundamentals, a soaring oil import bill, sagging FX reserves and political turbulence. The unit is down more than 13% versus the greenback since the start of the year and we are expecting further downside toward, and possibly beyond, the symbolic PKR70.00/US$ mark over the short term. Indeed, while we retain our downwardly revised end-of-year PKR68.00/US$ forecast for 2008, we acknowledge that there are real downside risks to this

If you would like to subscribe to South Asia Monitor and gain instant access to this article, please click here to subscribe.

If you would like to take a trial to South Asia Monitor please click on the trial link below.