Rupee closes slightly firmer at 86.90/96 vs dollar

KARACHI: Rupee closed slightly firmer at 86.90/96 to the dollar, compared with the previous day's close of 87.00/07, a record low closing.

"The rupee was traded at 87.09 to the dollar today," said a currency dealer at a foreign bank, compared with a record low of 87.10 made on Monday.

Dealers said they expect the currency to remain under pressure, as dollar payments are typically higher in July and August because of stronger oil demand and debt payments.

Stalled payments from an International Monetary Fund (IMF) bailout programme are also negatively impacting the rupee.

The IMF has criticized the Pakistan government for its patchy implementation of fiscal reforms, and has held back the sixth tranche of an $11 billion bailout programme since August last year.

In the money market, overnight rates ended at the top level of 13.40 percent, compared with Monday's close of 13.15 percent amid tight liquidity in the interbank market.

Copyright Reuters, 2011