Pakistani Rupee to cross Rs 147 mark against US dollar: Report

Pakistani Rupee to cross Rs 147 mark against US dollar: Report

LAHORE: The Pakistani rupee is predicted to touch Rs 147 in coming weeks as projected in a report.

At the same time Pakistani Rupee is said to be the cheapest currency in South Asia, according to Renaissance Capital.

IMF has reportedly asked Pakistan to devalue currency to the extent of Rs 150 equivalent to one US dollar.

Renaissance Capital says Pakistan’s most recent devaluation takes the rupee to just 4 percent below its long-term average rate (1995-2018).

The PKR has never been more than 13 percent weak (PKR147 equivalent) to its real effective exchange rate (REER) average rate since 1995 but may beat that in coming months, Renaissance Capital predicted.

Renaissance Capital considers Pakistan among the three vulnerable emerging markets alongside Turkey and Argentina and one investor told them the IMF is looking for rupee at Rs147 to a dollar – which would take it to a 13 percent discount to the long-term average rate.

The International Monetary Fund (IMF) has currently projected Pakistan’s current account deficit will contract from 5.9 percent of GDP in 2018 (the worst in emerging markets) to 5.3 percent of GDP in 2019 (again the worst in EM).