Currency: Rupee falls against dollar

Pakistani rupee weakened at 97.34/40 against the dollar, compared to Wednesday’s 97.17/23.


Reuters December 13, 2012 Less than a minute read
Currency: Rupee falls against dollar

KARACHI: In the currency market, the Pakistani rupee weakened at 97.34/40 against the dollar, compared to Wednesday’s 97.17/23. The rupee came under pressure due to import payments. The local currency may fall further due to strong demand for the dollar from importers, a dealer 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 ended at 10% compared to Wednesday’s close of 9.9%.

Published in The Express Tribune, December 14th, 2012.

COMMENTS

Replying to X

Comments are moderated and generally will be posted if they are on-topic and not abusive.

For more information, please see our Comments FAQ