Currency: Rupee ends weaker to dollar

KARACHI: The rupee ended weaker at 90.80/85 to the dollar, compared with Friday’s close of 90.69/74/75 because of increased import payments, and dealers expect the pressure to continue following a rise in international oil prices. Pakistan’s central bank kept its key policy rate flat at 12 percent on Saturday. 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 IMF last week 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 between 10.80 per cent and 11.25 per cent, compared Friday’s close of 11.90 per cent because of increased liquidity in the interbank market.

Published in The Express Tribune, February 14^th, 2012.