Currency: Rupee eases against dollar
Pakistani rupee eased to 96.57/96.62 against the dollar, compared to Friday’s close of 96.49/96.54.
KARACHI:
In the currency market, the Pakistani rupee eased to 96.57/96.62 against the dollar, compared to Friday’s close of 96.49/96.54, on weak demand for the local currency. The currency has remained under pressure due to debt servicing to the International Monetary Fund (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 7% compared to Friday’s close of 9.5%.
Published in The Express Tribune, December 4th, 2012
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