Currency: Rupee firms against dollar

KARACHI: The rupee ended firmer at 90.62/67 to the dollar, compared with Tuesday’s close at 90.70/75 amid a lack of import payments. The rupee has been supported recently by remittances from Pakistanis overseas, which rose nearly a quarter to $8.59 billion in the first eight months of the 2011/12 fiscal year, compared with $6.96 billion in the 2010/11 period. 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 $2.952 billion in the first eight months of the 2011/12 fiscal 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 were flat at the top level of 11.90%.

Published in The Express Tribune, March 30^th, 2012.