Rupee weakens; o/n rates flat

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KARACHI: In the currency market, on Friday, rupee weakened to 87.57/64 to the dollar, compared with the previous day's close of 87.53/58 to the dollar, amid higher import payments.

The rupee hit a record low of 87.92 to the dollar last week and dealers expect the pressure to continue after reports Pakistan will not seek a new loan from the International Monetary Fund.

Increases in import payments and a negative economic outlook will also continue to keep the local unit under pressure, dealers say.

The IMF also projected Pakistan's GDP growth for 2011/12 fiscal year at 3.8 percent, compared with the government's target of 4.2 percent.

In the money market, overnight rates were flat at the top level of 13.40 percent, unchanged from the previous day's close, despite a reverse-repo in which the central bank bought back 267 billion rupees ($3.05 billion), against scheduled outflows of 210 billion rupees. (Reuters)