Currency: Rupee weakens against dollar

Rupee ended weaker at 90.40/45 to the dollar


Reuters January 31, 2012 Less than a minute read

KARACHI: The rupee ended weaker at 90.40/45 to the dollar, compared with Monday’s close of 90.35/42, driven by increased import payments. The rupee touched a record low of 91.28 to the dollar on January 9, 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 per cent, unchanged from Monday’s close, due to a lack of liquidity in the interbank market.

Published in The Express Tribune, February 1st, 2012.

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