Currency: Rupee recovers from record low

KARACHI: The rupee recovered from Monday’s record low amid lack of import payments, but dealers expect the local unit to stay under pressure for now. The rupee closed at 86.52/60 to the dollar on Wednesday, firmer than Monday’s close of 86.75/80. It hit a record low of 86.83 on Monday and banks were closed on Tuesday. Dealers said dollar payments are typically higher in July and August because of stronger oil demand and debt payments. As well as oil payments, the International Monetary Fund’s (IMF) stalled aid programme is also weighing the rupee down. 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.

Published in The Express Tribune, August 4^th, 2011.