Currency: Rupee steadies against dollar

KARACHI: The rupee steadied on Friday after hitting a record low of 89.93 to the dollar a day earlier, but dealers said more pressure was likely on the local currency in the days ahead. “The rupee showed minor strength today, but pressure remains in the wake of oil payments over the past three weeks,” said a dealer at a local bank. “Exporters continue to remain on the sidelines and are holding out for a weaker rupee, although the psychological Rs90 mark against the dollar might see some exporters offloading positions in the near term,” he said. The rupee ended at 89.60/65 to the dollar, compared with Thursday’s close of 89.62/67. In the money market, overnight rates ended at the floor of 9 percent, unchanged from the previous day, amid ample liquidity, dealers said.

Published in The Express Tribune, December 17^th, 2011.