Pakistan Lets Rupee Devalue as Finances Wobble Before Election
- Pakistan has devalued the rupee four times in eight months
- Central bank last week raised key rate by most since 2008
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Pakistan’s central bank devalued the rupee for the fourth time since December, seeking to slow the depletion of its foreign-exchange reserves before a national election in nine days.
The currency, whose rate is set by the central bank, dropped as much as 5.3 percent to 128 per dollar at the close, according to a statement released by State Bank of Pakistan. The rupee is the worst performer in Asia this year, according to a basket of 13 currencies compiled by Bloomberg. The movement in the exchange rates reflects the demand-supply gap of the foreign exchange in the interbank market, the central bank said in a statement.