Currency: Rupee firms marginally against dollar

KARACHI: The rupee ended firmer at 90.69/74 to the dollar, compared with Thursday’s close of 90.70/75 because of lack of import payments, but dealers expect the pressure to continue following a rise in international oil prices. Dealers said they were also cautious after the International Monetary Fund advised Pakistan to take immediate steps to tackle growing budget pressures and raise interest rates to contain inflation. The International Monetary Fund on Monday projected a widening of Pakistan’s fiscal deficit in the 2011/12 fiscal year to 7 per cent of gross domestic product, compared with the government’s revised budget target of 4.7 per cent. In the money market, overnight rates ended at their top level of 11.90 per cent, unchanged from Thursday’s close amid lack of liquidity in the interbank market.

Published in The Express Tribune, February 11^th, 2012.