Currency: Rupee sets new record low against dollar

KARACHI: The rupee weakened slightly to end at 94.29/36 against the dollar, a record low, compared with Friday’s close of 94.26/34. The rupee has been under sustained pressure in recent weeks due to increased import payments, especially for oil. Analysts also cite concerns over current account deficit, IMF loan repayments and recent proposed cuts in US aid to Pakistan by 56% for fiscal 2013 as reasons for the depreciation. The monetary policy statement released by the State Bank of Pakistan this month has left interest rate unchanged at 12%. Overnight rates in the money market closed slightly higher at 11.90%, compared with 11.50% on Friday and 11.90% last Thursday.

Published in The Express Tribune, June 12^th, 2012.