New low: Rupee crosses 90 mark against dollar

Traders hold on to dollar amid bleak economic outlook.


Reuters December 21, 2011

KARACHI: The rupee traded at a record low of 90.03 to the dollar on Wednesday as import payments rose and exporters held on to the greenback following a bleak economic outlook for the country.

“The rupee was traded at 90.03 (to the dollar),” said a bank dealer.

The rupee was trading at 89.92/98 to the dollar at 2:58 pm, compared with Tuesday’s close of 89.90/95.

Dealers said exporters held on to their dollars, putting further pressure on the rupee.

Pakistan’s current account deficit stood at $2.10 billion in July to November compared with $589 million in the same period a year earlier.

The deficit is likely to widen further in the coming months because of debt repayments and a lack of external aid.

Islamabad has to begin repayments on an $8 billion IMF loan in early 2012, and without additional sources of revenue, its foreign exchange reserves may come under pressure, analysts said.

It has to make a repayment of more than $1.1 billion in the second half of 2011/12 fiscal year.

Foreign exchange reserves were at $16.69 billion in the week ending December 9, compared with a record $18.31 billion as of July 30.

Published in The Express Tribune, December 22nd, 2011.

COMMENTS (1)

Arman Yousaf | 12 years ago | Reply

A nose dive towards devaluation & a very simple figure to observe the Govt performance that the Country Current account deficit has been swelled four timeS vs last year.

May God help Us....Aamin

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