Currency: Rupee weakens against dollar

KARACHI: The rupee fell on Monday amid higher dollar demand from importers while dealers said the local unit is likely to stay under pressure because of import payments. The rupee ended at 87.30/35 to the dollar, weaker than Friday’s close of 87.14/18. “There were import payments of around $100 million which pulled the rupee lower,” said a dealer at a foreign bank. Dealers said the rupee was under pressure despite rising remittances. However, dealers cautioned that a widening current account deficit means the local currency could experience downward pressure in the days ahead. The rupee hit a record low at 87.92 to the dollar in September.

Published in The Express Tribune, November 22^nd, 2011.