Currency: Rupee weakens slightly against dollar

KARACHI: The rupee ended marginally weaker at 90.86/91 to the dollar, compared with Monday’s close of 90.85/95, but dealers expect pressure to continue because of higher import payments, especially for oil. Global oil prices stayed within sight of $120 a barrel on Tuesday as international consumers grappled with supply disruptions. The State Bank of Pakistan cautioned that it would be a challenge to finance the country’s projected current account deficit. The IMF in February 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 higher at 11.90 per cent, compared with Monday’s close of between 10.75 per cent and 11.25 per cent, amid lack of liquidity in the interbank market.

Published in The Express Tribune, February 22^nd, 2012.