Rupee strikes new dollar low

KARACHI (Reuters) - The Pakistani rupee hit an all-time low against the dollar on Monday because of pressure from import payments, dealers said. The rupee ended at 85.45/50 to the dollar, compared with Fridays close of 85.15/18. The rupee hit a record low of 85.34 last week. Dealers said the downward pressure will likely remain on the rupee at least until the announcement of the budget for the 2010/11 fiscal year, with exporters holding on to dollars. The budget is due to be announced on Saturday. The rupee has lost 1.40 percent against the dollar this year after losing 6.17 percent last year and 22.12 percent in 2008. In the money market, overnight rates rose to 12.40 percent, compared with Fridays close of between 12.00 percent and 12.15 percent, amid tight liquidity in the interbank market. Dealers said there were no scheduled inflows or outflows on Monday. The next inflow of 85 billion rupees ($995 million) is scheduled for June 3. Dealers said they were waiting for the treasury bill auction due on Wednesday with a target of 90 billion rupees ($1.05 billion).

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