Dance
SENIOR MEMBER
- Joined
- Jul 20, 2010
- Messages
- 4,850
- Reaction score
- 0
Dec 8 (Reuters) - The Pakistani rupee recovered on Thursday as import payments waned, after hitting consecutive record lows in the last six trading sessions, dealers said.
"The rupee was traded at 85.35 (to the dollar) and there was just one small (import) payment today," said a bank dealer.
The rupee ended at 89.10/16 to the dollar, compared with Wednesday's close of 89.25/35. Earlier on Wednesday, it had hit a record low of 89.45.
The rupee traded at 89 to the dollar in the TOM (one-day forward) market and some dealers said the central bank might have verbally intervened in the currency market to support the rupee.
Dealers said there were few import payments -- for which hard currency is required -- due in the next few days, which is likely to ease pressure on the local unit.
But Pakistan's bleak economic outlook could push the rupee to fresh record lows in the medium-term.
The International Monetary Fund forecasts economic growth for 2011/12 fiscal year at 3.5 percent, lower than the government's target of 4.2 percent.
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 IMF loan in early 2012 and without additional sources of revenue, its foreign exchange reserves may come under pressure, analysts say.
Foreign exchange reserves fell to $16.68 billion in the week ending Dec.2. They hit a record $18.31 billion in the week ended July 30.
Dealers said tense relations between Pakistan and the United States were also worrisome. Two senior Republican senators called on Monday for a thorough review of U.S. relations with Pakistan, declaring that all security and economic aid to Islamabad must be reconsidered.
Stocks rose nearly 1 percent as bargain hunters accumulated fertiliser shares at attractive prices, dealers said.
The Karachi Stock Exchange's (KSE) benchmark 100-share index ended 0.96 percent, or 108.68 points, higher at 11,392.57 on turnover of 50.27 million shares.
Fauji Bin Qasim ended 4.29 percent higher at 52.70 rupees, while Engro Corp rose 1.3 percent at 118.45 rupees.
In the money market, overnight rates closed at the top level of 11.90 percent, unchanged from Wednesday's close, amid tight liquidity in the interbank market, dealers said.
Dealers said the State Bank of Pakistan may conduct a reverse repo on Friday as there are scheduled outflows of 329 billion rupees ($3.68 billion). ($1 = 89.3500 Pakistani rupees) (Reporting by Sahar Ahmed; Editing by Catherine Evans)
Pakistani rupee firms; stocks up; o/n rates flat | Reuters
"The rupee was traded at 85.35 (to the dollar) and there was just one small (import) payment today," said a bank dealer.
The rupee ended at 89.10/16 to the dollar, compared with Wednesday's close of 89.25/35. Earlier on Wednesday, it had hit a record low of 89.45.
The rupee traded at 89 to the dollar in the TOM (one-day forward) market and some dealers said the central bank might have verbally intervened in the currency market to support the rupee.
Dealers said there were few import payments -- for which hard currency is required -- due in the next few days, which is likely to ease pressure on the local unit.
But Pakistan's bleak economic outlook could push the rupee to fresh record lows in the medium-term.
The International Monetary Fund forecasts economic growth for 2011/12 fiscal year at 3.5 percent, lower than the government's target of 4.2 percent.
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 IMF loan in early 2012 and without additional sources of revenue, its foreign exchange reserves may come under pressure, analysts say.
Foreign exchange reserves fell to $16.68 billion in the week ending Dec.2. They hit a record $18.31 billion in the week ended July 30.
Dealers said tense relations between Pakistan and the United States were also worrisome. Two senior Republican senators called on Monday for a thorough review of U.S. relations with Pakistan, declaring that all security and economic aid to Islamabad must be reconsidered.
Stocks rose nearly 1 percent as bargain hunters accumulated fertiliser shares at attractive prices, dealers said.
The Karachi Stock Exchange's (KSE) benchmark 100-share index ended 0.96 percent, or 108.68 points, higher at 11,392.57 on turnover of 50.27 million shares.
Fauji Bin Qasim ended 4.29 percent higher at 52.70 rupees, while Engro Corp rose 1.3 percent at 118.45 rupees.
In the money market, overnight rates closed at the top level of 11.90 percent, unchanged from Wednesday's close, amid tight liquidity in the interbank market, dealers said.
Dealers said the State Bank of Pakistan may conduct a reverse repo on Friday as there are scheduled outflows of 329 billion rupees ($3.68 billion). ($1 = 89.3500 Pakistani rupees) (Reporting by Sahar Ahmed; Editing by Catherine Evans)
Pakistani rupee firms; stocks up; o/n rates flat | Reuters
