Rupee retreats against dollar; overnight rates flat

KARACHI: On Wednesday in currency market, the rupee ended weaker at 90.71/74 to the dollar, compared with Tuesday's close of 90.66/71 because of increased import payments.

The rupee had been supported recently by remittances from Pakistanis overseas, which rose 21.45 percent 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.

In March, remittances totaled $1.14 billion.

In Friday's monetary policy statement the central bank said the external sector was likely to remain under pressure because of both external debt payments and a lack of foreign aid.

Pakistan's current account deficit widened to a provisional $3.089 billion in the first nine months of the 2011/12 fiscal year, compared with $10 million over the same period in the previous year, the central bank said on Wednesday.

Overnight rates in the money market ended flat at 11.90 percent, unchanged from the previous day's close amid tight liquidity in the interbank market. (Reuters)