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Pakistani rupee at record low of 89.45 to dollar.
By REUTERS
Published: Dec 7, 2011 23:50 Updated: Dec 7, 2011 23:50
KARACHI: The Pakistani rupee traded at a record low on Wednesday, weighed down by payments for imports and a bleak outlook for the country's economy.
Dealers cited concerns about the weak outlook for Pakistan's economy. The International Monetary Fund (IMF) forecasts economic growth for 2011/12 fiscal year at 3.5 percent, lower than the government's target of 4.2 percent.
"The rupee has come under significant pressure so far on a widening trade deficit and large external debt payments," said Sayem Ali, economist at Standard Chartered Ltd.
The rupee ended at 89.25/35 to the dollar, compared with Friday's close of 88.96/89.00. Monday and Tuesday were public holidays.
It has lost about 4.3 percent this year, compared with 1.53 percent in 2010.
Pakistan's current account deficit stood at $1.6 billion in July-Oct compared with $541 million in the same period a year earlier.
Islamabad has to start repaying an $8 billion International Monetary Fund loan in early 2012 and without additional sources of revenue, its foreign exchange reserves will come under pressure, analysts say.
Foreign exchange reserves fell to $16.88 billion in the week ending Nov. 25. They hit a record $18.31 billion in the week ended July 30.
Dealers said tense relations between Pakistan and the US were also worrisome, as two senior Republican senators called on Monday for a thorough review of US relations with Pakistan, declaring that all security and economic aid to Islamabad must be reconsidered.
Stocks also fell as institutions sold their holdings on deteriorating US and Pakistan ties, dealers said.
The Karachi Stock Exchange's (KSE) benchmark 100-share index ended 0.78 percent, or 88.32 points, lower at 11,283.89 on turnover of 37.87 million shares.
"Sentiment remained bearish at the KSE on investor concerns for uncertain Pakistan-US relations and trade was thin amid a lack of major triggers," said Ahsan Mehanti, director at Arif Habib Investments Ltd.
In the money market, overnight rates closed at the top level of 11.90 percent, unchanged from Friday's close, amid tight liquidity in the interbank market, dealers said.
Pakistani rupee at record low of 89.45 to dollar - Arab News
By REUTERS
Published: Dec 7, 2011 23:50 Updated: Dec 7, 2011 23:50
KARACHI: The Pakistani rupee traded at a record low on Wednesday, weighed down by payments for imports and a bleak outlook for the country's economy.
Dealers cited concerns about the weak outlook for Pakistan's economy. The International Monetary Fund (IMF) forecasts economic growth for 2011/12 fiscal year at 3.5 percent, lower than the government's target of 4.2 percent.
"The rupee has come under significant pressure so far on a widening trade deficit and large external debt payments," said Sayem Ali, economist at Standard Chartered Ltd.
The rupee ended at 89.25/35 to the dollar, compared with Friday's close of 88.96/89.00. Monday and Tuesday were public holidays.
It has lost about 4.3 percent this year, compared with 1.53 percent in 2010.
Pakistan's current account deficit stood at $1.6 billion in July-Oct compared with $541 million in the same period a year earlier.
Islamabad has to start repaying an $8 billion International Monetary Fund loan in early 2012 and without additional sources of revenue, its foreign exchange reserves will come under pressure, analysts say.
Foreign exchange reserves fell to $16.88 billion in the week ending Nov. 25. They hit a record $18.31 billion in the week ended July 30.
Dealers said tense relations between Pakistan and the US were also worrisome, as two senior Republican senators called on Monday for a thorough review of US relations with Pakistan, declaring that all security and economic aid to Islamabad must be reconsidered.
Stocks also fell as institutions sold their holdings on deteriorating US and Pakistan ties, dealers said.
The Karachi Stock Exchange's (KSE) benchmark 100-share index ended 0.78 percent, or 88.32 points, lower at 11,283.89 on turnover of 37.87 million shares.
"Sentiment remained bearish at the KSE on investor concerns for uncertain Pakistan-US relations and trade was thin amid a lack of major triggers," said Ahsan Mehanti, director at Arif Habib Investments Ltd.
In the money market, overnight rates closed at the top level of 11.90 percent, unchanged from Friday's close, amid tight liquidity in the interbank market, dealers said.
Pakistani rupee at record low of 89.45 to dollar - Arab News
