Currency: Rupee weakens, overnight rates down

KARACHI: The rupee weakened on Monday because of increased import payments especially for oil, and dealers said the local unit is likely to come under further pressure in the medium term because of a bleak outlook for the country’s economy. The rupee ended at 89.10/15 to the dollar, compared with Friday’s close of 89/10. It dropped to a record low of 89.45 on Wednesday. In the money market, overnight rates closed lower at between 9.50% and 10%, compared with Friday’s close of 11.90% amid increased liquidity in the interbank market.

Published in The Express Tribune, December 13^th, 2011.