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Pakistani rupee firms on IMF hopes; stocks edge down
Reuters - Friday, August 7
KARACHI, Aug 6 - The Pakistani rupee firmed by 0.7 percent against the dollar on Thursday on expectations that the International Monetary Fund will approve the country's third loan tranche on Friday, dealers said.
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The rupee <PKR=> closed at 82.50/60 to the dollar, strengthening from Wednesday's close of 83.09/19.
Pakistan obtained a $7.6 billion emergency loan package from the IMF last November to avert a balance of payments crisis. The third tranche of about $850 million is expected to be approved by the IMF when its board meets on Friday.
"The IMF meeting is expected to yield some positive results," said a local currency dealer.
Pakistan has also requested an extra $4 billion as "insurance" to help it cope with its economic crisis.
However, analysts expect the rupee to fall this year due to increased dollar demand from oil imports and the central bank's commitment to pursue a flexible exchange rate. [ID:nSIN94736]
The rupee has lost 4.1 percent this year after losing 22.12 percent in 2008.
Pakistani stocks ended marginally lower on Thursday as investors booked profits at higher levels, dealers said.
The Karachi Stock Exchange's benchmark 100-share index <.KSE> fell 0.16 percent, or 12.37 points, to 7,822.32 on turnover of 116.7 million shares.
"There was no bad news today. Investors booked gains on higher levels," said Sajid Bhanji, a dealer at brokers Arif Habib Ltd.
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