Economy / Pakistan
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PKR: Under Siege
July 2008 | Currency ForecastSorry, you must be a subscriber to view this article in full. If you are a subscriber please login.
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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