Currency: Rupee trades at record low of 90.35
rupee traded at a record low of 90.35 on Wednesday on the back of increased import payments
Reuters
January 05, 2012
Less than a minute read
KARACHI:
The rupee traded at a record low of 90.35 on Wednesday on the back of increased import payments and a deteriorating economic outlook, dealers said. “In addition to weak external account data, growing political uncertainty will exacerbate pressure on the rupee,” said Eurasia Group analyst Shamila Chaudhary. “The break with the IMF, downward trend in US-Pakistan relations, prospects of less US aid, and growing civil-military tensions within Pakistan all weaken market confidence,” added Chaudhary. The rupee traded at its previous record low of 90.20 on Tuesday and lost 0.17% in one day. The rupee ended at 90.27/31 to the dollar, compared with Tuesday’s close of 90.11/16. The country’s deficit is likely to widen further in the coming months because of debt repayments and a lack of external aid. Islamabad has to start paying back an $8 billion International Monetary Fund loan in early 2012.
Published in The Express Tribune, January 5th, 2012.
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