Currency: Rupee steady against dollar

Heavy loan repayment to the IMF is raising concern and weakening the rupee, dealers said.

KARACHI:
In the currency market, the rupee ended weaker at 98.36/98.39 against the dollar, compared to Monday’s close of 98.25/98.30.

Heavy loan repayment to the International Monetary Fund (IMF) is raising concern and weakening the rupee, dealers said.

The debt repayments 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 $9.234 billion in the ongoing fiscal year, a growth of 7.47% year-on year, or $642 million.

Monthly average remittances for the first eight months of the fiscal year clocked in at $1.154 billion as compared to $1.074 billion during the corresponding period of the previous fiscal year.

Overnight rates in the money market remained flat at 9.4%.

Published in The Express Tribune, March 27th, 2013.

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