Currency : Rupee weakens against dollar
The Pakistani rupee ended weaker at 95.16/21 to the dollar, compared with Tuesday’s close of 94.90/95.
KARACHI:
The Pakistani rupee ended weaker at 95.16/21 to the dollar, compared with Tuesday’s close of 94.90/95. The currency is under pressure because of repayments for an International Monetary Fund (IMF) debt. 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 at 7.40%, compared to Tuesday’s close 7.50%.
Published in The Express Tribune, October 4th, 2012.
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