Currency: Rupee weakens against dollar

KARACHI: The rupee ended weaker at 99.66/99.72 against the dollar, compared to Friday’s close of 99.40/99.50 (Monday was a bank holiday). 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 fall to 6.50% from Friday close of 9%.

Published in The Express Tribune, July 3^rd, 2013.

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