Currency: Rupee weakens against dollar
In the money market, overnight rates were unchanged at their top level of 11.90 per cent.
KARACHI:
The rupee ended weaker at 90.88/93 to the dollar, compared to its close on Monday of 90.85/90 because of higher import payments of oil. International oil prices were trading above $123 a barrel on Tuesday. The State Bank of Pakistan warned last month that financing the country’s projected current account deficit would be a challenge, and kept its key policy rate unchanged at 12 per cent. The deficit is expected to widen further in the coming months 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 their top level of 11.90 per cent amid tight liquidity in the interbank market.
Published in The Express Tribune, March 7th, 2012.
The rupee ended weaker at 90.88/93 to the dollar, compared to its close on Monday of 90.85/90 because of higher import payments of oil. International oil prices were trading above $123 a barrel on Tuesday. The State Bank of Pakistan warned last month that financing the country’s projected current account deficit would be a challenge, and kept its key policy rate unchanged at 12 per cent. The deficit is expected to widen further in the coming months 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 their top level of 11.90 per cent amid tight liquidity in the interbank market.
Published in The Express Tribune, March 7th, 2012.