Currency : Rupee decreases against dollar

KARACHI: The rupee ended almost flat at 90.18/23 to the dollar, compared with Tuesday’s close of 90.17/22 in dull trade. The rupee touched a record low of 91.28 to the dollar in intra-day trade this month. Analysts say concerns about the country’s economic health, especially a weakening current account, are adding to pressures on the rupee. The current account recorded a provisional deficit of $2.154 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 coming months because of debt repayments and a lack of external aid. In the money market, overnight rates ended at 9.10 per cent, compared with Tuesday’s close of 9.10 per cent and 10 per cent.

Published in The Express Tribune, January 26^th, 2012.