Currency: Rupee hits fresh low against dollar

Rupee closing on Monday at 92.14/19 to the dollar

KARACHI: The Pakistani rupee extended its recent sequence of marking record lows versus the US dollar, closing on Monday at 92.14/19 to the dollar, compared with 91.70/75 on Friday. The rupee lost more than 1.2% of its value during last 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. “The pressure we saw last week on the rupee because of increased import payments was sustained on Monday, but we expect the pressure to reduce tomorrow,” said a currency trader Abdul Basit. Overnight rates in the money market ended marginally lower at 10.75%, down from Friday’s close of 11%, as a result of a slight increase in liquidity in the interbank market.

Published in The Express Tribune, May 29^th, 2012.