KARACHI: Though the rupee has been appreciating against the dollar in what dealers describe as a managed way, the market expects the local currency to break the Rs280 barrier by the end of this month.

At the same time, market players believe it will be difficult for the State Bank to engineer a weaker rupee to boost exports, arguing that past experiences of devaluation failed to deliver a sustained increase in export volumes.

Some currency experts said the scope for further devaluation to support exports was limited, particularly as the US dollar itself has come under pressure against major global currencies.

“There is no mathematical calculation behind this expectation that the dollar may slip below Rs280 by the end of this month. It is the market sentiment and it happens at the end of the year,” said Atif Ahmed, a currency dealer in the interbank market. He believes the dollar will slip below........

© Dawn Business