First in history: Rupee weakens to 100 against dollar

The rupee has now lost 39 per cent of its value against the US currency since March 2008.


Afp February 11, 2013
A money dealer counts US dollar notes at a money market in Karachi. PHOTO: AFP

KARACHI: The Pakistani rupee on Monday sank to an all-time low against the US dollar over forex reserve fears as the country repayed $146 million to the International Monetary Fund.

The rupee fell to 100.1 to the greenback in trading in Karachi, down from 99.30 on the open market Friday, and has now lost 39 per cent of its value against the US currency since March 2008.

"We have traded the dollar at Rs100.1, although there is a slight difference on the open market," said currency dealer Mohammad Arshad.

The official inter-bank rate for the dollar is Rs98, but Mohammad Sohail, who heads brokerage firm Topline Securities, confirmed it had crossed 100 on the open market.

Pakistan had a $10.7 billion IMF loan until September, but had drawn only about a third of it. The government has indicated it would not seek a new loan.

Pakistan repaid $145.79 million to the IMF on Monday and is scheduled to repay another $375 million on February 26, according to Syed Wasimuddin, spokesman for the country's central State Bank.

So far Pakistan has repaid $2.57 billion, $1.5 million this fiscal year, ending June 30, according to the central bank.

"The rupee is likely to remain under pressure because of IMF repayments," said Sohail.

"The foreign exchange reserves have declined to $8.7 billion as of January 31 from $10.8 billion at end-June 2012," said the central bank last week.

The IMF last November urged Pakistan to reduce its large budget deficit to bolster the struggling economy's resiliency, noting that foreign exchange reserves under $10 billion were below adequate levels.

COMMENTS (57)

Zaid Hamid | 11 years ago | Reply

@habib-Jakarta. My friend, Pls do not compare yourself with Indonesia. You see their maids outside working indonesia. If you really go and see and be with them then few of the richest ppl in asia are from Indonesia. The culture, the heritage, the passion for their history, the affection they show to people is far far more better than Pakistan. Never in my life of working in 4 muslim country, I heard the name of a muslim guy as arjuna or nakula. They converted to muslim but the way they keep their old age hindu rituals still intact is really amazing. We need to really learn a lot from the javenese people. They are emerging market now. In few years they will surpass few of the asian countries.

Ram | 11 years ago | Reply

@Aijaz: It is not that all democracies have stronger currencies. It is just that your country's priorities are not right. Many of the rich don't pay taxes. Major part of your funds are used for military hardware (disproportionate to your requirements) instead of welfare. No electricity for manufacturing. Railway infrastructure is not utilized fully due to shortage of engines. Your citizens don't feel safe at home due to kidnapping / terrorism. If you address these issues, your country will become a safe place to invest, resulting greater inflow of foreign exchange and your currency will appreciate. At Rs.100 per US$, you have an advantage over your competitors on exports. Why not exploit?.

VIEW MORE 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