Currency: Rupee stronger against dollar

KARACHI: The rupee ended firmer at 90.62/70 to the dollar, compared with Friday’s close of 90.74/78. The rupee had been supported by remittances from overseas Pakistanis, which totalled $1.16 billion for February. The rupee touched a record low of 91.28 to the dollar in January, dragged down by concerns over higher payments for oil imports and Pakistan’s overall economic health. There was also concern about Pakistan’s current account deficit, which widened to $2.952 billion in the first eight months of the 2011/12 fiscal year, compared with $194 million over the same period in the previous year. The current account deficit in February stood at $260 million, compared with a deficit of $98 million in February 2011. The deficit stood at $364 million in January 2012. In the money market, overnight rates rose to 11.90%, unchanged from Friday’s close, because of tight liquidity in the interbank market.

Published in The Express Tribune, March 20^th, 2012.