Currency: Rupee weakens against dollar

KARACHI: The rupee ended weaker at 90.67/69 to the dollar compared with Friday’s close of 90.56/60 because of increased import payments.

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 the country’s overall economic health.

There was also concern about the current account deficit, which widened to $2.95 billion in the first eight months of the fiscal year from $194 million in the year-ago period. The current account deficit in February was $260 million, compared with $98 million in February 2011. The deficit stood at $364 million in January 2012.

Overnight rates in the money market stayed flat at 9.10%, unchanged from last Thursday’s close because of increased liquidity in the interbank market.

Published in The Express Tribune, April 10^th, 2012.