Dollar dwarfs rupee down to a record low

KARACHI: In the currency market, Friday, the rupee ended weaker at 90.18/23 to the dollar, compared to Thursday's close of 90.00/10, because of an increase in import payments.

The rupee fell to a record low of 91.28 to the dollar in intra-day trade last week.

Analysts say concerns about the country's economic health, especially a weakening current account, are adding to pressure on the rupee.

The current account recorded a provisional deficit of $2.154 billion in the first six months of the 2011/12 fiscal year, compared with a surplus of $8 million in the same period last year, according to data from the State Bank of Pakistan.

The deficit is likely to widen further in the coming months because of debt repayments and a lack of external aid.

In the money market, overnight rates ended lower at between 11 percent and 11.15 percent, compared with the previous day's close of 11.90 percent amid increased liquidity in the interbank market. (Reuters)