Rupee falls to new record low on repayment concerns

KARACHI: December import payments and looming fears of repayments against foreign debt further depreciated the rupee to a new historic low against the dollar on Wednesday, dealers said.

The rupee closed at 90.03 to a dollar, down by 12 paisas from Tuesday’s close of 89.91, the previous record low, in the interbank forex market. “The free fall of the local currency continues due to high import payments and expected pressure on the dollar due to scheduled repayments early next year,” a dealer said.

Experts said that usually in December the import payments are higher. However, the prime concern remained the repayment of the International Monetary Fund (IMF) loan in February, an expert said.
The State Bank of Pakistan (SBP) said that the country would repay the IMF around $1.391 billion in FY12. The country has to repay around $9.338 billion by FY16, according to the repayment schedule released by the SBP.

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