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- Title
Impact of Exchange Market Forces on Pak-Rupee Exchange Rates during Globalization Period: An Empirical Analysis.
- Authors
Bukhari, Syed Adnan Haider Ali Shah; Akmal, Muhammad Shahbaz; Butt, Mohammad Sabihuddin
- Abstract
This paper analyzes the impact of exchange market forces on Pak-Rupee/US dollar exchange rates during the 1965–1971 globalization period. The main findings are that a) the behavior of Pakistan's fundamentals relative to those of the USA help to explain exchange market forces against the Pak-Rupee; b) during the run up to devaluation in the globalization period the monetary authorities in Pakistan were acting to reduce domestic credit; but that c) additional pressure was brought against the Pak-Rupee from speculative sources. These findings relate to current thinking on the choice of the exchange rate regime as even well behaved fundamentals may not be sufficient to sustain a currency on its peg.
- Subjects
PAKISTAN; FOREIGN exchange market; FOREIGN exchange rates; NATIONAL currencies; U.S. dollar; MONETARY policy; INTERNATIONAL markets; GLOBALIZATION
- Publication
Lahore Journal of Economics, 2006, Vol 11, Issue 1, p121
- ISSN
1811-5438
- Publication type
Article