Currency: Rupee weakens against dollar
In the money market, overnight rates ended flat at the top level of 11.90 per cent.
Reuters
February 19, 2012
Less than a minute read
KARACHI:
The rupee ended weaker at 90.77/83 to the dollar, compared with Thursday’s close of 90.68/73 because of higher import payments especially of oil as global oil prices were trading near $120 a barrel. The rupee is likely to stay under pressure, and the State Bank of Pakistan has cautioned that the real challenge was to finance the projected current account deficit. 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, compared with the government’s revised budget target of 4.7 per cent. In the money market, overnight rates ended flat at the top level of 11.90 per cent, unchanged from Wednesday’s close amid lack of liquidity in the interbank market.
Published in The Express Tribune, February 18th, 2012.
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