Currency: Rupee weakens against dollar

KARACHI: The rupee ended at 105.40/105.46 against the dollar in the interbank market on Thursday, compared to Wednesday’s close of 105.39/105.44. 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. Overnight rates in the money market increased to 9.5% from Wednesday’s close of 8.25%.

Published in The Express Tribune, January 17^th, 2014.

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