Rupee Seen Depreciating Further in 2024 Amid High Inflation and Economic Struggles
• Rupee could depreciate another 5-10% against the dollar in 2024 due to economic challenges like high inflation, debt obligations, etc.
• Rupee closed at 283.26 per dollar on Dec 15, 2023, down from 226.43 on Dec 30, 2022.
• Persistent high inflation around 28% in first 5 months of current fiscal year, well above SBP's 22% target.
• Need to generate forex liquidity avenues and use measures to curb unchecked price hikes to stabilize economy.
• Majority of financial market participants expect rupee-dollar rate between 290-310 by June 2024.