Currency: Rupee weakens against dollar

KARACHI: The rupee ended slightly weaker at 90.80/86 to the dollar, compared with Wednesday’s close of 90.78/83, because of increased import payments and oil prices inching above $119 a barrel today. The rupee has been supported by remittances, which rose 21.45% to $9.73 billion in the first nine months of the 2011/12 fiscal year, compared with $8.02 billion in the same period last year.  Monetary policy statement released by State Bank of Pakistan this month said, the external sector was likely to remain under pressure because of external debt payments and lack of foreign aid. Current account deficit widened to a provisional $3.09 billion in the first nine months of the 2011/12 fiscal year, compared with $10 million over the same period in the previous year, central bank said on Wednesday. Overnight rates in the money market ended flat at 11.90%, unchanged from the yesterday’s close amid tight liquidity in the interbank market.

Published in The Express Tribune, April 27^th, 2012.