Business | Markets
Markets await IMF as Pakistan rupee steady
Pakistan's rupee and stocks ended flat yesterday as the markets awaited clarity on foreign inflows or financial assistance from the International Monetary Fund (IMF), dealers said.
- Reuters
- Published: 00:08 October 25, 2008
Karachi: Pakistan's rupee and stocks ended flat yesterday as the markets awaited clarity on foreign inflows or financial assistance from the International Monetary Fund (IMF), dealers said.
Pakistan is facing a balance-of-payments crisis and is expected to get IMF help although the prime minister's top adviser on economic affairs said on Thursday Pakistan had not yet formally asked for an IMF facility.
Total foreign reserves, including those held by commercial banks, have fallen sharply from a high of Dh60.61 billion ($16.5 billion) in October last year, and stood at $7.32 billion on October 18, of which the central bank accounted for $4.04 billion.
The central bank's reserves represented about one-and-a-half months of import cover.
The rupee was quoted closing at 81.40/50, unchanged from Thursday's close. Dealers said there were some import payments but some hidden inflow of dollars kept the rupee steady.
Foreign inflows
Currency dealers have suspected some central bank intervention to support the rupee over the past week and though the bank generally declines to comment, it said last Monday it had stepped in to help support the currency.
Despite the expected negotiations with the IMF, the rupee was likely to weaken in the short-term, a dealer said.
"The fundamentals have not changed and until we see foreign inflows the rupee will probably weaken," said a currency dealer.
The rupee has lost 24.3 per cent against the dollar this year.
Like most emerging economies, Pakistan was badly hit by soaring global oil and food prices over the past year.
Share this article
More from Markets
More from Business
Popular in Business
-
XPRESS
Way to go this DSF
A fun-filled route to guide you to all the happening dos in town
Business Editor's choice
-
Shaikh Mohammad reaffirms UAE unity
Vice-President quashes talk of discord and reassures investors on the strength of Dubai's economy
-
Pizzazz on the palm: A Nikki Bisiker project
Bright, bold and ultra glam are the top notes of this apartment in The Palm Jumeirah's beautiful marina
-
flydubai starts service to Sudanese capital
Dubai's first low cost airline, celebrated its eighth inaugural flight in less than six months
