Currency: Rupee strengthens against dollar

KARACHI: The rupee ended higher at 97.80/97.81 against the dollar compared to Tuesday’s close of 99.55/99.65. Heavy debt repayments to the International Monetary Fund (IMF) have dented the central bank’s reserves, which have declined significantly, putting pressure on the rupee. Pakistan paid the 28th loan installment of $149 million to the IMF on February 18. According to data provided by the State Bank of Pakistan, overseas Pakistanis remitted $9.033 billion between July and January of the current fiscal year. They had 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. Overnight rates in the money market fell to 8.30% from Tuesday’s close of 10.00%.

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

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