Currency: Rupee strengthens against dollar

The currency remains under pressure due to debt servicing to the International Monetary Fund (IMF).


Reuters September 06, 2012

KARACHI: The Pakistani rupee ended stronger at 94.68/74 to the dollar, compared to 94.76/81 on Tuesday. The currency remains under pressure due to debt servicing to the International Monetary Fund (IMF). The rupee sank to an all-time low against the dollar on August 24 on high oil prices and foreign exchange reserve fears as the country repaid $397 million to the Washington-based fund. Pakistan has already repaid $901.4 million to the IMF in previous three instalments. The country has to pay $3.4 billion in 2012-13, $3.43 billion in 2013-14 and $1.35 billion in 2014-15 to retire IMF’s loan and country’s foreign exchange reserves will continue to face pressure due to the debt servicing in the next three years. Overnight rates in the money market ended at 9% compared with Tuesday’s 8.5%.

Published in The Express Tribune, September 6th, 2012.

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