Currency: Rupee strengthens against dollar

KARACHI: The rupee ended at 98.40/98.45 against the dollar, stronger than Wednesday’s close of 98.45/95.50. 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 $143.75 million 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. Overnight rates in the money market remained flat at 9.40%.

Published in The Express Tribune, May 24^th, 2013.

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