INR Strengthens, PKR Holds Flat Amid Policy Rate Cuts
The Indian Rupee strengthens as foreign reserves rise, while Pakistan’s Rupee stays flat after a surprise rate cut. Inflation concerns persist for both.
Published on 18 Sept 2024
, 1 minute read
Here’s this week’s overview of the Indian Rupee and Pakistani Rupee:
Indian Rupee
The Indian Rupee strengthened to 83.83 against USD last week. Industrial production, manufacturing and inflation all came in over expectations on Thursday. A further swell in foreign exchange reserves also helped the Rupee firm up against a weaker dollar.
Pakistani Rupee
PKR ended the week trading flat against USD at 278.1. The State Bank of Pakistan cut its policy rate by 200 basis points to 17.5% during its meeting on Thursday, exceeding market expectations of a 150 bp cut, following a 100 bp cut in July, as both headline and core inflation dropped sharply in recent months.
Inflation eased to 9.6% in August, down from 12.6% in June, driven by delayed application of administered energy price hikes and favourable global oil and food prices. Despite this, inflation risks remain due to volatile global commodity prices, potential energy price adjustments, and tax measures.
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