Currency: Rupee firms against dollar

KARACHI: The Pakistani rupee firmed slightly to close at 94.34/39 against the dollar compared with 94.45/50 on Tuesday. The rupee has been under sustained pressure due to increases import payments, especially for oil. The monetary policy statement released by State Bank of Pakistan last month 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 remained unchanged at 11.90%.

Published in The Express Tribune, July 19^th, 2012.