Currency: Rupee weakens, overnight rates flat

KARACHI: The rupee ended at 87.35/40 to the dollar, weaker than Monday’s close of 87.30/35 amid higher dollar demand from importers and dealers said the local unit is likely to stay under pressure because of import payments. Dealers said the rupee was under pressure despite rising remittances from overseas Pakistani. However, dealers cautioned that a widening current account deficit, which stood at a provisional $1.555 billion in July-Oct period, compared with $541 million in the same period last year, could keep the local currency under pressure in the days ahead. The rupee hit a record low at 87.92 to the dollar in September. In the money market, overnight rates were flat at its top level of 11.90%, amid tight liquidity in the interbank market.

Published in The Express Tribune, November 23^rd, 2011.