Currency: Rupee weakens against dollar

The rupee ended weaker at 97.73/79 against the dollar, compared to Friday’s close of 97.70/75.

KARACHI:
The rupee ended weaker at 97.73/79 against the dollar, compared to Friday’s close of 97.70/75. The rupee has been under pressure due to import and oil payments and may fall further due to strong demand for the dollar from importers, a dealer said. The rupee has also remained under pressure due to debt servicing to the International Monetary Fund (IMF). 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 the country’s forex outflows are likely to remain at $1 billion per month. Overnight rates in the money market remained flat at 9%.


Published in The Express Tribune, February 5th, 2013.

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