Currency: Rupee weakens further against dollar

KARACHI: The Pakistani rupee weakened ahead of scheduled repayments to the International Monetary Fund (IMF) later this month. It ended at 96.24/96.29 to the dollar, compared to Monday’s close of 96.12/96.18. The currency is under pressure due to debt servicing to the International Monetary Fund. 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 7.00% compared to Monday’s 7.50%.

Published in The Express Tribune, November 7^th, 2012.