Currency: Rupee gains, overnight rates flat

Pakistani rupee gains further amid continuous healthy dollar inflows.

KARACHI: The Pakistani rupee gained further on Thursday amid continuous healthy dollar inflows, but dealers said the rupee may ease next week when higher import payments are due.

The rupee closed at 84.85/90 to the dollar, compared with Wednesday’s close of 85.10/17. “Some large import payments are due next week, which may put downward pressure on the rupee,” said a dealer, but added that healthy dollar inflows would ensure that there is no sharp slide in the rupee’s value.

In the money market, overnight rates ended unchanged at top level of 13.9 per cent in a tight liquidity situation, and dealers expected the central bank to inject funds into the market soon through an open market operation.

Published in The Express Tribune, April 8^th,  2011.