Currency: Rupee weakens against dollar
The local currency may fall further due to high dollar demand from importers, say dealers.
Reuters
December 11, 2012
Less than a minute read
KARACHI:
In the currency market, the Pakistani rupee weakened to 96.91/95 against the dollar, compared to Friday’s 96.70/94. The local currency may fall further due to high dollar demand from importers, 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. 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 for a fresh IMF programme if pressure is not arrested. Overnight rates in the money market closed flat at 9%.
Published in The Express Tribune, December 11th, 2012.
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