Forex reserves fall to $15.87b

KARACHI: Foreign exchange reserves fell to $15.87 billion in the week ended June 4, down from $16.01 billion the previous week, the central bank said on Thursday.

Reserves held by the State Bank of Pakistan (SBP) fell to $12.14 billion from $12.31 billion a week earlier, while those held by commercial banks rose to $3.73 billion from $3.70 billion, said the SBP.

Foreign exchange reserves got a boost last week after the country received $288 million from the United States as part of the coalition support fund.

In the currency market, the rupee closed firmer at 85.22/29 to a dollar, compared to Wednesday’s close of 85.25/35 as exporters sold dollars in the interbank market.

“The rupee is likely to touch 86 by the end of this fiscal year,” said a currency dealer.

The rupee, which closed at a record low of 85.45/50 last week, has lost about 1.08 per cent against the dollar this year after losing 6.17 per cent last year and 22.12 per cent in 2008.

In the money market, overnight rates were unchanged at top levels at 12.40 per cent amid tight liquidity in the interbank market.

Published in the Express Tribune, June 11^th, 2010.