Rupee at lowest this year

Tuesday, December 15, 2009
KARACHI: The Pakistani rupee ended on Monday at its lowest close this year at 84.30/35 to the dollar, compared with Saturday’s close of 84.06/11 because of import payments, especially for oil, dealers said.

The rupee was expected to remain under pressure in the near term and reach 85 to the dollar, they said.

Dealers said there was also pressure as the central bank said commercial banks had to provide foreign currency for imports of crude oil from Monday.

As part of Pakistan’s commitments under an International Monetary Fund (IMF) programme, the central bank said on Dec 5 it would stop providing foreign currency for imports of crude oil.

The State Bank of Pakistan stopped providing foreign exchange for furnace oil in February, and for diesel and other refined products in August. The rupee has weakened 6.17 per cent this year after losing 22.12 per cent last year.