Currency: Rupee weakens against the dollar

KARACHI: The rupee ended weaker at 90.68/72 to the dollar, compared with Tuesday’s close of 90.60/65 to the dollar. The rupee is likely to stay under pressure and the latest monetary policy announcement kept the key policy rate flat at 12 per cent for the next two months. The IMF last week projected a widening of Pakistan’s budget deficit in the 2011/12 fiscal year to 7 per cent of gross domestic product. In the money market, overnight rates ended flat at the top level of 11.90 per cent, unchanged from Tuesday’s close. Dealers said they were awaiting the result of the Pakistan Investment Bond auction, due to be announced later today. Dealers expect a rise in the cut-off yields in the PIB auction.

Published in The Express Tribune, February 16^th, 2012.