Rupee firms to 69.5 vs dollar

[Naveed Yaseen]

KARACHI: The Pakistani rupee ended firmer on Monday as dealers said there were fewer import payments but they added the outlook was bleak because of widening current account and fiscal deficits and inflation at a 30-year high.

The rupee was quoted at 69.50/60 to the dollar at the close, compared with Saturday’s close of 69.90/95. The central bank last week took measures to stabilise the rupee after it set its weakest ever closing level at 72.85/90 on July 8.

“There were fewer import payments in the market today,” said a currency dealer. The rupee has depreciated 11.4 per cent since the beginning of the year. Dealers said there was also market talk and speculation in some newspapers that the government may limit non-oil, non-essential imports to reduce demand. Government officials have not commented on any such measure.

Oil accounted for 28 per cent of Pakistan’s total imports of $35.95 billion during the first 11 months of 2007/08. Trade details for the full 2007/08 financial year (July-June) have yet to be released.

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