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Glossary · PSX term

Rupee depreciation.

Rupee depreciation is a fall in the value of the Pakistani rupee against foreign currencies.

Definition

A weaker rupee raises the cost of imports and foreign debt but can help exporters earn more in rupee terms. It affects company earnings differently, so it can lift some PSX sectors and hurt others.

Worked example

If the rupee weakens from 280 to 300 per US dollar, importers pay more while exporters may benefit.

Related on PSX Clarity

Current account deficit

Foreign exchange reserves

Interest-rate sensitivity

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