Currency: Rupee recovers against dollar

KARACHI: The Pakistani rupee recovered to 91.70/75 to the dollar on Friday, compared with Thursday’s close of 91.90/95. The rupee touched a record low of 92.10 to the dollar on Thursday for the third consecutive day. The rupee has lost more than 1.2% of its value during the week. Analysts cite concerns over current account deficits which dipped to $313 million in April from $150 million surplus in March, IMF repayment of $393 million due May 24 and recent proposed cuts US aid to Pakistan by 56% for fiscal 2013 as reasons for the devaluation. Overnight rates in the money market ended higher at 11%, compared to Thursday’s close of 9%, due to decreased liquidity in the market.

Published in The Express Tribune, May 26^th, 2012.