Currency: Rupee firms against dollar

KARACHI: The rupee ended firmer at 90.22/27 to the dollar, compared with Thursday’s close of 90.20/25, amid a lack of import payments. The rupee touched a record low of 91.28 to the dollar this month, pressured by concerns about higher payments for oil imports and the country’s economic health, especially a weakening current account. The current account recorded a provisional deficit of $2.15 billion in the first six months of fiscal 2012, 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%, unchanged from Thursday’s close.

Published in The Express Tribune, January 28^th, 2012.