The second markdown of the rupee by State Bank of Pakistan in just three months. The rupee plunged to Rs 118 against the US Dollar.
Before the markdown of rupee in December 2017, one dollar was traded at a rate of around 105 rupees. After an increase of more than 7 rupees in a matter of hours, dollar stands equal to Rs 118.
The value of one dollar stood at Rs 110.5. However, the value of the national currency depreciated in what is said to be a decreasement by the central bank.
The decreasement will effect the local consumer especially in the automobile market. Major companies including Toyota, Honda, and Suzuki have already hiked prices more than once in the past three months due to the decreasement of rupee.
The decision was appreciated by International Monetary Fund (IMF). However, IMF advised maintaining greater exchange rate flexibility.