Currency: Rupee strengthens against dollar

KARACHI: The Pakistani rupee ended slightly stronger at 94.46/51 to the dollar, compared with Wednesday’s close of 94.48/54. The currency is 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 forex 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 flat at 10.40%, compared to Wednesday’s close 9.50%.

Published in The Express Tribune, September 21^st, 2012.