Pakistan Unlikely to Devalue Rupee Again: Fitch

Pakistan is unlikely to devalue its currency any further as the pressure on the Pakistani rupee has eased, according to Fitch Ratings. In response to a question by Bloomberg, Krisjanis Krustins, a Hong Kong-based director at Fitch, said that they do not expect a large further devaluation of the Pakistani rupee. “Although the currency has been very stable over the past few months, pressure on the reserves of the State Bank of Pakistan has also been contained, which suggests minimal interventions to support the currency,” Krustins told the publication. The Pakistani rupee has slumped by over 20 percent in the ongoing year after the country devalued its currency back in January. The steep devaluation pushed the rupee to the status of one of the world’s worst-performing currencies. “We continue to assume that the IMF and Pakistan will conclude the ongoing programme review, likely after the IMF has clarity on the upcoming budget,” Krustins said. “However, the window for this is rapidly closing, with the programme originally set to expire in June, and substantive progress unlikely in the immediate run-up to elections due by October.” Finance Minister Ishaq Dar recently claimed that some hidden hands were involved in keeping the Pakistani rupee undervalued artificially. The minister said that the Pakistani rupee was undervalued by at least Rs. 45 against the dollar.