Currency: Rupee strengthens against dollar

KARACHI: The rupee ended higher at 105.23/105.28 against the dollar compared to Tuesday’s close of 105.33/105.37. Heavy debt repayments to the IMF have dented the central bank’s reserves, which have declined significantly, putting pressure on the rupee. Pakistan paid the 27th loan installment of $147 million to the International Monetary Fund on February 11. 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 fiscal year. Overnight rates in the money market fell to 7.50% from Tuesday’s close of 10%.

Published in The Express Tribune, February 13^th, 2014.

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