Currency: Rupee weakens, overnight rates flat

KARACHI: The rupee weakened to 87.45/50 to the dollar on Monday compared with Friday’s close of 87.40/50 amid increased import payments. The rupee hit a record low of 87.92 to the dollar last month. A decision by the government not to seek a new IMF loan and speculation of a rate cut would likely add to the pressure on the rupee. In the money market, overnight rates were flat at the top level of 13.40%, unchanged from Saturday’s close amid tight liquidity in the interbank market.

Published in The Express Tribune, October 4^th, 2011.