Rupee concedes against dollar

Rupee concedes against dollar

Karachi: (Monday, January 23, 2012) pressurized by the deteriorated balance of payment and increasing import bill, the rupee, once again, ended up weaker against US dollar today. Compared to Friday’s closing rates of 90.18-23 in
Karachi capital market, it stood for 90.21-26 on the first day of the week.

Maintaining a dipping trend this month, the rupee has gone down to a record 91.28 against dollar in the intra-trade this month.

Economic analysts are of the view that the country’s weak economic health, poor financial management, especially a weakening current account are the major reasons of an increased pressure on Pak rupee.

In the first six months of the ongoing fiscal year (2011-2012) the current account has born a record deficit of $ 2.154. according to the State Bank of Pakistan, the difference seems huge if we compare it with the last year’s surplus
of $ 8 billion during the same period.

With the debt payment still to start with and the IMF unlikely to issue a letter of comfort, the current account deficit is likely to increase which only culminate in widening the gap further in the coming months.

In the money market, overnight rates declined further and ended between 9.75 and 10.50 percent, as compared to Friday’s stats of 11 to 11.15 percent. The phenomenon was mainly attributed to the increased liquidity in the interbank
market.

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Posted by Fayyaz Yaseen on Jan 23 2012. Filed under Pakistan. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry