Pak rupee sinks to new low

The Pakistan rupee sank to a new low on Friday against the US dollar as the demand for the greenback rose due to oil imports payments, though Islamabad has repaid a $394 million loan installment to the International Monetary Fund.

The rupee against the UAE dirham also hit a new low at Rs25.40, the highest ever exchange rate in the open market.

The dollar in the open market was available over Rs93. Exchange companies predict that the rupee may fall further in the coming months and it may hit Rs100, although the State Bank of Pakistan, or SBP, said that foreign exchange reserves rose by $207million.

However, the news that brought some respite to plunging rupees was that remittances from overseas Pakistanis rose by 20.2 per cent to $10.877 billion during the first ten months of fiscal year 2011-12.

The SBP said that Pakistan’s gross foreign exchange reserves stood at $16.104 billion in the week ending May 18 from $16.104 billion.

According to currency dealers, the main reason for the alarming rise in the dollar is the current political deadlock between Islamabad and Washington over the reopening of Nato supply routes.

news@khaleejtimes.com