Currency: Rupee weakens against dollar

The rupee ended weaker at 98.65/98.70 against the dollar, compared to Tuesday’s close of 98.63/98.69.

KARACHI:
The rupee ended weaker at 98.65/98.70 against the dollar, compared to Tuesday’s close of 98.63/98.69.

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 $12.762 billion in the ongoing fiscal year, a growth of 5.74% or $693.34 million Monthly average of remittances for July-May this fiscal year came to $1.160 billion compared to $1.097 billion in the same period a year ago.

Overnight rates in the money market fell to 8.50% from Tuesday’s close of 9%.

Published in The Express Tribune, June 20th, 2013.

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