Currency: Rupee weakens against dollar
Pakistani rupee closed slightly weaker at 96.54/59 to the dollar, compared to Wednesday’s close of Rs96.53/58.
Reuters
November 29, 2012
Less than a minute read
KARACHI:
In the currency market, the Pakistani rupee closed slightly weaker at 96.54/59 to the dollar, compared to Wednesday’s close of Rs96.53/58, ahead of scheduled debt repayments to the International Monetary fund (IMF) and strong demand for dollars, dealers said. The currency has remained under pressure due to debt servicing to the IMF. Pakistan recently repaid $394.3 million on an IMF Stand-By Arrangement loan. 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 the loan. The country’s foreign exchange reserves will continue to face pressure due to debt servicing in the next three years. According to reports, a balance of payment crisis is being predicted after March 2013, as country’s forex outflows are likely to remain at $1 billion per month, which may force Pakistan to negotiate a fresh IMF programme if pressure is not arrested. Overnight rates in the money market ended at 9.5% compared to Wednesday’s close of 9%.
Published in The Express Tribune, November 30th, 2012.
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