Currency: Rupee firms against dollar

KARACHI: The Pakistani rupee firmed slightly to end at 94.22/28 against the dollar compared with Wednesday’s close of 94.32/38. The rupee has been under sustained pressure in recent weeks due to increases import payments, especially for oil. The monetary policy statement released by State Bank of Pakistan this month has left interest rates unchanged at 12%. Analysts also cite concerns over current account deficits. IMF loan repayments and recent proposed cuts in US aid to Pakistan by 56% for fiscal 2013 as reasons for the devaluation. Overnight rates in the money market closed slightly higher at 10.50%, compared with 10% on Wednesday amid slightly lower liquidity.

Published in The Express Tribune, June 15^th, 2012.