Currency: Rupee strengthens against dollar

KARACHI: The rupee ended firmer at 90.00/10 to the dollar, compared to Wednesday’s close of 90.21/28, amid lack of 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, is adding to pressure on the rupee. The current account recorded a provisional deficit of $2.15 billion in the first six months of the 2011/12 fiscal year, compared with a surplus of $8 million in the same period last year, according to data from the State Bank of Pakistan. 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 ended flat at 11.90 per cent, unchanged from the previous day’s close.

Published in The Express Tribune, January 20^th, 2012.