Recovery: Rupee recovers from record low
Rupee recovered on Thursday from a record low hit, but dealers expect the currency to remain under pressure.
KARACHI:
The rupee recovered on Thursday from a record low hit the previous day due of lack of import payments, but dealers expect the currency to remain under pressure.
The rupee ended at 86.48/53 to the dollar, firmer than Wednesday’s close of 86.56/58. It hit a record low of 86.58 on Wednesday. “The rupee was traded as high as 86.57 today (Thursday),” said a dealer at a bank.
Dealers said dollar payments are typically higher in July and August because of stronger oil demand and debt payments. The International Monetary Fund’s (IMF) stalled aid programme is also weighing down the rupee.
IMF has criticised the government for its patchy implementation of fiscal reforms and has held back the sixth tranche of an $11.3 billion loan programme since August last year. In the money market, overnight rates closed at 13.9 per cent, unchanged from the previous day’s close as there were scheduled outflows of Rs120 billion against scheduled inflows of Rs106 billion.
Published in The Express Tribune, July 29th, 2011.
The rupee recovered on Thursday from a record low hit the previous day due of lack of import payments, but dealers expect the currency to remain under pressure.
The rupee ended at 86.48/53 to the dollar, firmer than Wednesday’s close of 86.56/58. It hit a record low of 86.58 on Wednesday. “The rupee was traded as high as 86.57 today (Thursday),” said a dealer at a bank.
Dealers said dollar payments are typically higher in July and August because of stronger oil demand and debt payments. The International Monetary Fund’s (IMF) stalled aid programme is also weighing down the rupee.
IMF has criticised the government for its patchy implementation of fiscal reforms and has held back the sixth tranche of an $11.3 billion loan programme since August last year. In the money market, overnight rates closed at 13.9 per cent, unchanged from the previous day’s close as there were scheduled outflows of Rs120 billion against scheduled inflows of Rs106 billion.
Published in The Express Tribune, July 29th, 2011.