Currency: Rupee loses ground against dollar
Pakistani rupee eased to 96.60/96.65 against the dollar, compared to Tuesday’s close of 96.50/96.57.
KARACHI:
In the currency market, the Pakistani rupee eased to 96.60/96.65 against the dollar, compared to Tuesday’s close of 96.50/96.57, ahead of scheduled government debt and oil payments, dealers said. 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. 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 for a fresh IMF programme if pressure is not arrested. Overnight rates in the money market rose to 10% from Tuesday’s close of 7%.
Published in The Express Tribune, December 6th, 2012.
In the currency market, the Pakistani rupee eased to 96.60/96.65 against the dollar, compared to Tuesday’s close of 96.50/96.57, ahead of scheduled government debt and oil payments, dealers said. 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. 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 for a fresh IMF programme if pressure is not arrested. Overnight rates in the money market rose to 10% from Tuesday’s close of 7%.
Published in The Express Tribune, December 6th, 2012.