Business News
Pakistani rupee falls as market awaits central bank meeting
Jun 30, 2008, 11:02 GMT
Karachi - The Pakistani rupee on Monday hit a new low versus the US dollar as traders looked for triggers from an upcoming central bank meeting.
The rupee was trading at 68.30 against the dollar in the interbank market, down from 67.85 last week due to uncertainty over interest rate policy by the central State Bank of Pakistan.
The bank scheduled a policy review meeting for fiscal 2008-2009 (July-June) on Tuesday.
Traders expect the administration to increase bank's benchmark interest rate anywhere between 0.5 per cent to 1 per cent.
'The State Bank's main concern is containing rising inflation so anything is expected in tomorrow's meeting,' said Nabeel Iqbal, head of research at Khannani and Kalia, the country's largest private foreign exchange firm.
Pakistanis face a 30-year-high inflation rate due to soaring international oil prices and acute grains' shortages.
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