Currency: Rupee at record low against dollar

KARACHI: The rupee closed at 93.85/92, continuing its daily trend of posting record lows against the US dollar, compared with Friday’s close of 93.63/68, a record low at that time. The rupee has been under sustained pressure in the last two weeks because of increased import payments, especially for oil. Analysts also cite concerns over current account deficits, which dipped to $313 million in April from a $150 million surplus in March; IMF loan repayment of $393 million due May 24; and recent proposed cuts in US aid to Pakistan by 56% for fiscal 2013 as reasons for the devaluation. The rupee had earlier been supported by significantly higher remittances from overseas Pakistanis this year. Overnight rates in the money market closed at 11.90%, compared to 11.50% on Friday, because of decreased liquidity.

Published in The Express Tribune, June 5^th, 2012.