KARACHI:
The rupee fell to a new low on Friday on negative sentiment surrounding the country’s economic outlook, following the deteriorating security situation in the country’s commercial hub Karachi.
The rupee closed at 86.85/90 to the dollar—its weakest ever closing—down from the previous record low of 86.80/85 on Thursday. Dealers said they expect the local unit to stay under pressure for now, as dollar payments are typically higher in July and August because of stronger oil demand and debt payments.
“The rupee was traded as high as 86.92 against the dollar,” said a dealer at a foreign bank.
Stalled payments from a bailout programme by the International Monetary Fund (IMF) are also negatively impacting the rupee.
The IMF has criticised the Pakistan government for its patchy implementation of fiscal reforms, and has held back the sixth tranche of an $11 billion bailout programme since August last year. IMF and Pakistani officials were due to meet last month, but the meeting has been delayed and no new date has been announced.
Published in The Express Tribune, August 20th, 2011.
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