Currency: Rupee weakens against dollar

KARACHI: The rupee ended almost steady at 98.86/98.91 against the dollar, compared to Tuesday’s close of 98.87/98.93. 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. The last IMF repayment of $391 million was made 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 rose to 9% from Tuesday’s close of 8.75%.

Published in The Express Tribune, June 27^th, 2013.

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