Currency: Rupee weaker against dollar

KARACHI: The rupee ended weaker at 90.74/77 to the dollar compared to its close of 90.68/73 on Monday because of increased import payments. The rupee was supported this week by increased remittances from overseas Pakistanis. In February, overseas Pakistanis sent back $1.16 billion. Dealers expect some pressure on the rupee because of rising global oil prices. Oil was trading above $125 a barrel on Tuesday. There was also concern about the trade deficit, which widened by 41% to $14.6 billion in the first eight months of the 2011/12 fiscal year, the Pakistan Bureau of Statistics reported. Exports in the July-Feb period totalled $15.19 billion, and imports were $29.79 billion. The central bank kept the key policy rate flat at 12% for the next two months in its monetary policy announcement in February. In the money market, overnight rates were unchanged at their top level of 11.90% amid tight liquidity in the interbank market.

Published in The Express Tribune, March 14^th, 2012.