Currency: Rupee firms, overnight rates rise

Dealers say the local unit could come under pressure next week amid an increase in import payments.

KARACHI: The rupee firmed to close at 84.20/30 to the dollar, compared with Thursday’s close of 84.35/45, but dealers said the local unit could come under pressure next week amid an increase in import payments.

The currency has been supported in previous days by a record inflow of remittances, strong foreign exchange reserves position, healthy exports and a current account surplus, according to officials.

In the money market, overnight rates rose to end between 13.25 and 13.50 per cent, compared with the previous day’s close of 11 per cent as there were scheduled outflows of Rs32.5 billion ($385.5 million).

Published in The Express Tribune, April 16^th,  2011.