Rupee ends steady

The rupee closed unchanged at 141.39 to a dollar, ending at 142.25 a dollar, compared to 142.30 in the previous session.

Dealers said investors were looking ahead for tough budgetary measures that could possibly be dictated by IMF to bring economy on track.

Pakistan and the International Monetary Fund (IMF) started technical level talks to finalise details of the proposed bailout package over the next 10 days.

The visiting IMF mission will stay in Islamabad to conclude the technical details by May 6, while the policy level understanding will be reached over the next three days.

There are reports that Pakistan would sign an agreement with the IMF on May 10. The agreement would then be sent to the IMF board. However, investors’ fears about a negative outcome of the Paris-based Financial Action Task Force (FATF) meeting gripped investors.

Moneychangers said the local currency is depreciating continuously, leading the market to become unstable, adding, people were currently investing in dollars, which is causing their shortage in the market.

The country is struggling to tackle large budget and current account deficits, and faces a soaring inflation rate triggered by high oil prices and a weak rupee.

The central bank last month cut growth estimates, forecasting the economy to expand 3.5 to 4 percent in the 12 months to the end of June, well short of a government target of 6.2 percent.