Currency: Rupee sliding closer to record low
rupee ended weaker at 90.95/91.00 to the dollar
KARACHI:
The rupee ended weaker at 90.95/91.00 to the dollar on Thursday, inching closer to its record low of 91.28 touched in January, because of higher import payments especially for oil, dealers said. “As international oil prices are still on the higher side, we will continue to see the rupee under pressure and it may also hit a new record low in the coming weeks,” said a dealer at a local bank. International oil prices were trading above $123 a barrel on Thursday. The current account deficit is expected to widen further because of debt repayments and a lack of external aid. Dealers said they were also cautious after the IMF advised Pakistan to take immediate steps to tackle growing budget pressures and raise interest rates to contain inflation. In the money market, overnight rates were unchanged at its top level of 11.90 per cent amid increased liquidity in the interbank market.
Published in The Express Tribune, March 2nd, 2012.
The rupee ended weaker at 90.95/91.00 to the dollar on Thursday, inching closer to its record low of 91.28 touched in January, because of higher import payments especially for oil, dealers said. “As international oil prices are still on the higher side, we will continue to see the rupee under pressure and it may also hit a new record low in the coming weeks,” said a dealer at a local bank. International oil prices were trading above $123 a barrel on Thursday. The current account deficit is expected to widen further because of debt repayments and a lack of external aid. Dealers said they were also cautious after the IMF advised Pakistan to take immediate steps to tackle growing budget pressures and raise interest rates to contain inflation. In the money market, overnight rates were unchanged at its top level of 11.90 per cent amid increased liquidity in the interbank market.
Published in The Express Tribune, March 2nd, 2012.