Currency: Rupee weakens against dollar

KARACHI: The rupee ended weaker at 90.75/79 to the dollar, compared with Tuesday’s close of 90.70/71 because of an increase in import payments. The rupee had been supported by remittances from Pakistanis overseas, which totalled $1.16 billion in February. 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 was $260 million, compared with a deficit of $98 million in February 2011. In the money market, overnight rates fell to between 9.25%  and 9.75%, compared with the previous day’s close of 11.90%.Dealers said they were awaiting the results of an auction of three-, six- and 12-month treasury bills due later in the day, with the central bank expected to reject all bids for the 12-month paper.

Published in The Express Tribune, March 22^nd, 2012.