Currency: Rupee declines against dollar

KARACHI: The rupee ended weaker at 108.00/108.08 against the dollar, compared with Monday’s close of 107.74/107.78. Heavy debt repayments to the IMF have dented the central bank’s reserves, which have declined nearly 20% in the current fiscal year, putting severe pressure on the rupee. The last IMF repayment of $396 million was made on November 26, 2013. Overseas Pakistanis sent home a record $13.920 billion in the previous fiscal year (July 2012-June 2013), showing a growth of 5.56% or $733.64 million compared with $13.187 billion a year earlier. According to data provided by the State Bank of Pakistan, overseas Pakistanis sent $5.275 billion between July and October this fiscal year. Overnight rates in the money market decreased to 9.75% from Monday’s close of 9.90%.

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

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