Currency: Rupee weakens against dollar

KARACHI: The rupee ended weaker at 99.40/99.50 against the dollar, compared to Thursday’s close of 98.89/98.95.

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 $260 million was made on June 28 2013. 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 Thursday’s close of 8.75%.

Published in The Express Tribune, June 29^th, 2013.