Currency: Rupee firms against dollar

KARACHI: The rupee ended firmer at 90.62/70 to the dollar, compared with Wednesday’s close of 90.75/79 amid a lack of import payments. The rupee has been supported by remittances, which rose 23.4% to $8.59 billion in the first eight months of fiscal 2012, compared with $6.96 billion in the same period last year. In February, remittances totalled $1.16 billion. 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 $2.95 billion in the first eight months of the 2011/12 fiscal year, compared with $194 million over the same period in the previous year. In the money market, overnight rates fell to 9.10% compared with the previous day’s close of between 9.25% and 9.75% amid increased liquidity in the interbank market. Dealers said there were scheduled inflows of 119 billion rupees and scheduled outflows of 57 billion rupees.

Published in The Express Tribune, March 23^rd, 2012.