Currency: Rupee strengthens against dollar

The rupee ended at 98.25/98.30 against the dollar, stronger than Thursday’s close of 98.34/98.40.


Reuters May 03, 2013

KARACHI: In the currency market, the rupee ended at 98.25/98.30 against the dollar, stronger than Thursday’s close of 98.34/98.40. 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, on March 28, successfully paid its 11th instalment worth $143.75million of Stand-By-Arrangement (SBA) to the IMF. 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 rose to 9.50% from Thursday’s close of 9%.

Published in The Express Tribune, May 4th, 2013.

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