KARACHI: The Pakistani rupee weakened to close at 94.36/41 to the dollar, compared to 94.21/26 on Wednesday. The rupee has been under sustained pressure due to increases in 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. The rupee has earlier been supported by significantly higher remittances from overseas Pakistanis this year. Overnight rates in the money market closed unchanged at 11.90%.
Published in The Express Tribune, June 22nd, 2012.
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