Pakistani c.bank says committed to rupee stability

KARACHI, May 12 (Reuters) - Pakistan's central bank said on Monday it is committed to the stability of the exchange rate of the rupee which has been under pressure from high international oil prices and widening twin deficits.

"The central bank has been supporting the oil payments and other obligations of the government as well as providing the necessary support to the market as and when required," State Bank of Pakistan governor Shamshad Akhtar said in a statement.

The central bank had and will continue to supply necessary liquidity to the markets through "calibrated intervention", she said.

The rupee <PKR=PK> has depreciated 10.4 percent this year.

The volatility of the rupee did not reflect market fundamentals, but rather "distortions created by trading and speculative practices", Akhtar said.

The central bank had stepped up vigilance of interbank and kerb markets and was taking concrete steps to ensure the effective supply of foreign inflows, she said. (Reporting by Sahar Ahmed; Editing by Robert Birsel)