Currency: Rupee weakens, overnight rates higher

KARACHI: The rupee weakened against the dollar amid high demand for the US currency from importers following an increase in international oil prices, but dealers said the local unit is expected to remain range-bound in the coming days because of higher remittances from overseas Pakistanis. The rupee closed at 85.30/35 to the dollar, compared with Friday’s close of 85.26/33. Brent crude rose towards $120 a barrel and US Crude hit a two-and-a-half year high above $108 on Monday.  In the money market, overnight rates rose to top level of 13.9 per cent, amid tight liquidity in the interbank market.

Published in The Express Tribune, April 5^th,  2011.