Currency: Rupee stronger against the dollar

KARACHI: The rupee ended at 98.10/98.12 against the dollar, stronger than Tuesday’s close of 98.13/98.18. Heavy debt repayments to the International Monetary Fund (IMF) have been putting a dent in the central bank’s reserves, which have declined by nearly 20% in the current fiscal year, putting pressure on the rupee. Pakistan made another loan repayment to the IMF of $392 million on February 26, the central bank said. The next IMF repayment of $391 million is due at the end of May. 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 9.4% from Tuesday’s close of 9%.

Published in The Express Tribune, March 7^th, 2013.

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