Currency: Rupee retreats to 106.47 against dollar

KARACHI: The rupee ended weaker at 106.37/106.47 against the dollar, compared to Monday’s close of 106.10/106.20. The governor of the State Bank reiterated that previous depreciation in the currency was caused by market forces, not any aid stipulation from the International Monetary Fund (IMF). Heavy debt repayments to the IM 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. Overseas Pakistanis sent home a record $13.920 billion in the previous fiscal year (July 2012-June 2013), showing growth of 5.56% or $733.64 million compared with $13.187 billion a year earlier. 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 remained flat at 7%.

Published in The Express Tribune, September 26^th, 2013.

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