Rupee firms to 70 vs dollar

[Naveed Yaseen]

KARACHI: The Pakistani rupee firmed 1.75 per cent on Friday as demand for dollars eased after the introduction of stabilisation measures and on rumours the government may curb imports, dealers said.

The rupee was quoted at 69.90/70.00 at the close, compared with Thursday’s close of 71.15/25.

The central bank this week took measures to stabilise the rupee after it set its weakest ever closing level at 72.85/90 on Tuesday.

“The measures taken by the SBP has curbed speculation and therefore demand for dollars,” said a currency dealer. “There are also reports that the government may take some steps to curb imports.”

The rupee has depreciated 11.9 per cent since the beginning of the year. The State Bank of Pakistan (SBP) said late on Tuesday its governor, Shamshad Akhtar, had “indicated that SBP is continuing to support the rupee to ensure exchange rate stability”.

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 have yet to be released.

Foreign currency reserves have dwindled to levels equivalent to less than three months worth of imports as the central bank sold dollars to help oil importers make payments.

http://www.thenews.com.pk/daily_detail.asp?id=123554