The rupee ended weaker at 98.06/98.11 against the dollar, compared to Monday’s close of 97.96/98.01. The rupee has come under pressure after Pakistan made a $145 million payment to the International Monetary Fund (IMF), dealers said. Heavy debt repayments to the IMF have been putting a dent in the central bank’s reserves, which have declined by nearly 20% in the current fiscal year. The next IMF repayment of $398 million is due later this month on February 26. Meanwhile, overseas Pakistani workers have so far remitted $8.21 billion in the ongoing fiscal year, a growth of 10.4% year-on year, pr $770.41 million. Monthly average remittances for the first seven months of the fiscal year clocked in at $1.17 billion as compared to $1.06 billion during the corresponding period of the previous fiscal year. Overnight rates in the money market rose to 9.40% compared to Monday’s close of 9.25%.

Published in The Express Tribune, February 13^th, 2013.