Currency: Rupee eases, overnight rates decline

KARACHI: The rupee ended at 86.63/69 to the dollar on Monday, compared with Friday’s close of 86.60/65 because of increased import payments. 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. The 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 were slightly lower at between 11.50% and 11.75%, compared with Friday’s close of 11.90%.

Published in The Express Tribune, November 15^th,  2011.