Currency: Rupee weakens against dollar

KARACHI: The rupee ended weaker at 90.30/35 to the dollar compared to Monday’s close of 90.16/21, on the back of increased import payments. The rupee fell to a record low of 91.28 to the dollar in intra-day trade last week. Analysts say concerns about the country’s economic health, especially a weakening current account, are adding to pressure on the rupee. Pakistan’s current account deficit stood at $2.10 billion in July to November 2011 compared with $589 million in the same period a year earlier. The deficit is likely to widen further in the coming months because of debt repayments and a lack of external aid. In the money market, overnight rates eased to end at between 9.25% and 9.75%, down from 10.25% and 10.75% respectively on Monday.

Published in The Express Tribune, January 18^th, 2012.