Currency: Rupee falls, overnight rates flat

KARACHI: The rupee closed at 84.52/62 to the dollar, compared with Monday’s close of 84.27, because of higher demand for the dollar amid import payments.

The rupee touched an 11-month high last week after a record inflow of remittances in March, strong foreign exchange reserves, healthy exports and a current account surplus, according to analysts.

Remittances by overseas Pakistans increased by 22.37 per cent to more than $8 billion in the first nine months of the 2010/11 fiscal year, and in March a record $1.05 billion was received, according to data from the State Bank of Pakistan.

In the money market, overnight rates ended flat at 13 per cent, unchanged from the previous day’s close, and dealers said they were awaiting the Treasury bill auction scheduled for Wednesday. The next scheduled inflows are on Thursday amounting to Rs293 billion.

Published in The Express Tribune, April 20^th,  2011.