Currency: Rupee strengthens against dollar

The rupee closed at 98.06/98.12 against the dollar, stronger than Thursday’s close of 98.13/98.18.

KARACHI:
In the currency market, the rupee ended at 98.06/98.12 against the dollar, stronger than Thursday’s close of 98.13/98.18. The rupee has come under pressure after Pakistan made a $145 million payment to the International Monetary Fund (IMF), dealers said. Heavy debt repayments to the IMF have been putting a dent in the central bank’s reserves, which have declined by nearly 20% in the current fiscal year. The next IMF repayment of $398 million is due later this month on February 26. Meanwhile, overseas Pakistani workers have so far remitted $8.21 billion in the ongoing fiscal year, a growth of 10.4% year-on year, or $770.41 million. Monthly average remittances for the first seven months of the fiscal year clocked in at $1.17 billion as compared to $1.06 billion during the corresponding period of the previous fiscal year. Overnight rates in the money market rose to 9% from Thursday close of 8.5%.


Published in The Express Tribune, February 23rd, 2013.

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