Pakistani rupee trades at record low of 90.35 to dlr

[IndoCarib]

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By Sahar Ahmed

KARACHI | Wed Jan 4, 2012 6:59am EST

KARACHI Jan 4 (Reuters) - The Pakistani rupee traded at a record low of 90.35 on Wednesday because of increased import payments and a deteriotating economic outlook, dealers said.

"In addition to weak external account data, growing political uncertainty will exacerbate pressure on the rupee," said Shamila Chaudhary, analyst at Eurasia Group.

"The break with the IMF, downward trend in U.S.-Pakistan relations, prospects of less U.S. aid, and growing civil-military tensions within Pakistan -- all weaken market confidence."

The rupee traded at its previous record low of 90.20 on Tuesday and lost 0.17 percent in one day.

The rupee ended at 90.27/31 to the dollar, compared with Tuesday's close of 90.11/16.

There are concerns on the economic front as the country's current account deficit stood at $2.104 billion in July-Nov compared with $589 million in the same period a year earlier.

The deficit is likely to widen further in the coming months because of debt repayments and a lack of external aid.

Islamabad has to start paying back an $8 billion International Monetary Fund loan in early 2012. Without additional sources of revenue, analysts said, its foreign exchange reserves may come under pressure.

More than $1.1 billion is due in the second half of the 2011/12 fiscal year.

Foreign exchange reserves were at $16.77 billion in the week ending Dec. 23, compared with a record $18.31 billion as of July 30.

The rupee weakened 4.82 percent in 2011, after losing 1.53 percent in 2010.

There are also concerns about growing tensins with the West which could choke off much needed foreign aid.

The United States is the biggest donor to Pakistan and has allocated some $20 billion in security and economic aid since 2001, much of it in the form of reimbursements for Pakistan's assistance in fighting militancy.

In November, ties worsened after a cross-border NATO air attack killed 24 Pakistani soldiers.

Pakistan stocks fell because of foreign selling. The Karachi Stock Exchange's (KSE) benchmark 100-share index ended 0.35 percent, or 40.07 points, lower at 11361.97 on turnover of 46.13 million shares.

In the money market, overnight rates ended at their lowest level of 9.10 percent, unchanged from Tuesday's close amid increased liquidity in the interbank market.

Pakistani rupee trades at record low of 90.35 to dlr | Reuters

[Abhishek_]

wait till riaz haq sees this

[joekrish]

Aid is the key word here.The other way round is going to take some time for the economy to fall in the right track.

[Imran Khan]

damn every currency is going down now remember mushrraf"s economy team and cry lolz jai ho ghadari ki

---------- Post added at 10:51 PM ---------- Previous post was at 10:50 PM ----------

Aid is the key word here.

which is 0.04% of GDP and 0.05% or budget

[joekrish]

damn every currency is going down now remember mushrraf"s economy team and cry lolz jai ho ghadari ki

---------- Post added at 10:51 PM ---------- Previous post was at 10:50 PM ----------



which is 0.04% of GDP and 0.05% or budget

Then how are you going to fix this or do you see a quick fix to this problem.

[patna_ke_presley]

"The Pakistani rupee traded at a record low of ____ on ____ because of increased import payments and a deteriotating economic outlook"

Reuters is using same headline since 2 months only they are editing the current lowest value of the rupees and day of the Week. What a time saving editing by Reuters.

[StandForInsaf]

Aid is the key word here.The other way round is going to take some time for the economy to fall in the right track.

NO ,Pakistan is not dependent on aid as much as you foreigners think it has almost no effect on common pakistani , aid or no aid common pakistani is indifferent because this aid never reaches him, dollar is gaining momentum these days other currencies are also falling ie EUR ,GBP, INR

[karan.1970]

Now wait for Riaz to come up with a blog on how low PKR value will result in a mega boom in Pakistan's export industry

[Imran Khan]

Then how are you going to fix this or do you see a quick fix to this problem.

if 220billion GDP dam cant do any thing so what 700mn will do ? please for hell sake how many times i repeat it ? every month 1bn$ from overseas pakistanis tell me whats changed?

[StandForInsaf]

Now wait for Riaz to come up with a blog on how low PKR value will result in a mega boom in Pakistan's export industry

who is Riaz?

[joekrish]

NO ,Pakistan is not dependent on aid as much as you foreigners think it has almost no effect on common pakistani , aid or no aid common pakistani is indifferent because this aid never reaches him, dollar is gaining momentum these days other currencies are also falling ie EUR ,GBP, INR

Yes I know in fact the inr is also looking down, but India has a better economy and things will fall back to its place what about pakistan, the reserves don't look healthy.

[Imran Khan]

Yes I know in fact the inr is also looking down, but India has a better economy and things will fall back to its place what about pakistan, the reserves don't look healthy.

if you remember till 2007 you will never ask this qes .its matter of gov changed here nothing more .

[joekrish]

if 220billion GDP dam cant do any thing so what 700mn will do ? please for hell sake how many times i repeat it ? every month 1bn$ from overseas pakistanis tell me whats changed?

Bhai sorry dint know you had posted it, anyways have the in flows started coming in?

[Skull and Bones]

who is Riaz?

PDF's Finance minister.

[Imran Khan]

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Bhai sorry dint know you had posted it, anyways have the in flows started coming in?

nothing gonna happen yaar nothing . i am sure after zardari left hope soon things start getting better as in 1999 reserves was 500mn only by ganga shareef and when mushy come its start boom even far before wot .