Currency: Rupee firms against dollar

KARACHI: In the currency market, the rupee ended firmer at 90.49/54 to the dollar, compared with Monday’s close of 90.63/68 to the dollar amid a lack of import payments. The rupee has also been supported recently by remittances from overseas Pakistanis, rising by 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 is 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. In the money market, overnight rates rose to 9.75%, compared with the previous day’s close of 9.10% amid lack of liquidity in the interbank market.

Published in The Express Tribune, April 4^th, 2012.