Currency: Rupee, overnight rates flat

KARACHI: The rupee ended at 86.60/65 to the dollar, little changed from Thursday’s close, amid steady demand for the US currency from importers. Looking ahead, dealers said the local currency could face further downward pressure, despite healthy remittances from Pakistanis living abroad, thanks to a widening current account deficit. Pakistan’s current account deficit surged to a provisional $908 million in September, compared with a deficit of $201 million in August. The deficit for the July-September quarter was a provisional $1.21 billion, compared with $597 million in the same period last year, according to data from the State Bank of Pakistan. In the money market, overnight rates ended flat at the top level of 11.90% amid tight liquidity in the interbank market.

Published in The Express Tribune, November 12^th,  2011.