Rupee retreats against dollar

KARACHI: In the currency market, Monday, the rupee ended weaker at 90.21/26 to the dollar, compared with Friday's close of 90.18/23, due to an increase in import payments.

The rupee touched a record low of 91.28 to the dollar in intra-day trade this month.

Analysts say concerns about the country's economic health, especially a weakening current account, are adding to pressures 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 9.75 percent and 10.50 percent, compared with Friday's close of between 11 percent and 11.15 percent, amid increased liquidity in the interbank market. (Reuters)