Currency: Rupee weakens against dollar

Dealers say they expect the pressure to continue in the coming days on fears of a rise in international oil prices.

KARACHI: The rupee ended weaker on Friday against dollar amid increased payments for imports. Dealers said that they expect the pressure to continue in the coming days on fears of a rise in international oil prices. Hurricane Irene barrelled towards the US east coast refineries, posing a potential threat to supply and supporting prices. Ongoing conflict in Organisation of Petroleum Exporting Countries (Opec) member Libya and international pressure on Syria also underpinned sentiment. The rupee hit a record low at 87.10 on Monday. Dealers said they expect the currency to remain under pressure, as dollar payments are typically higher in July and August because of stronger oil demand and debt payments.

Published in The Express Tribune, August 27^th,  2011.