Currency: Rupee weakens against dollar
Overnight rates in the money market closed higher at 9.90%, compared to Tuesday’s close 8.50%.
KARACHI:
The Pakistani rupee ended slightly weaker at 95.37/43 to the dollar, compared with Tuesday’s close of 95.27/35. 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 closed higher at 9.90%, compared to Tuesday’s close 8.50%.
Published in The Express Tribune, October 18th, 2012.
The Pakistani rupee ended slightly weaker at 95.37/43 to the dollar, compared with Tuesday’s close of 95.27/35. 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 closed higher at 9.90%, compared to Tuesday’s close 8.50%.
Published in The Express Tribune, October 18th, 2012.