Rupee ends firmer at 90.66/71 to dollar

KARACHI: In currency markets, the rupee ended firmer at 90.66/71 to the dollar, compared with Monday's close of 90.70/75.

The rupee has 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 $2.95 billion in the first eight months of the 2011/12 fiscal year, compared with $194 million over the same period the previous year.

The current account deficit in February was $260 million, compared with a deficit of $98 million in February 2011. The deficit stood at $364 million in January 2012.

Overnight rates in the money market were almost flat at 11.90 percent, compared with the previous day's close of between 11.75 percent and 11.90 percent amid tight liquidity in the interbank market. (Reuters)