Currency: Rupee weakens against dollar

KARACHI: The rupee weakened against the dollar to close at 105.40/105.45 compared to Tuesday’s close of 105.20/105.25. Heavy debt repayments to the IMF have dented the central bank’s reserves, which have declined significantly, putting pressure on the rupee. Fresh repayment of $109 million was made on December 30. Overseas Pakistanis sent home a record $13.92 billion in the previous fiscal year (July 2012-June 2013), 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 remitted $5.275 billion between July and October this year. The money market was closed Wednesday due to a bank holiday due to which overnight rates in the money market remained at Tuesday’s close of 10%.

Published in The Express Tribune, January 2^nd, 2014.

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