Currency: Rupee ends flat against dollar

KARACHI: The rupee ended almost flat at 90.87/94 to the dollar, compared to its close of 90.88/93 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 policy rate unchanged for the next two months. 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. Dealers said they were awaiting the result of a treasury bill auction, due to be released on Wednesday.

Published in The Express Tribune, March 8^th, 2012.