Currency: Rupee firms, overnight rates flat

The rupee continues its strong performance, closing at 84.55/58 to the dollar, up from Tuesday’s close of 84.65/70.

KARACHI: The rupee ended stronger on Wednesday amid softer demand for the dollar, and dealers said healthy dollar inflows would keep the local unit steady in the near term.

The rupee closed at 84.55/58 to the dollar, up from Tuesday’s close of 84.65/70. The rupee has performed strongly in recent months, hitting an 11-month high earlier this month, largely due to a record inflow of remittances, strong foreign exchange reserves, healthy exports and a current account surplus, according to analysts and officials. In the money market, overnight rates remained pegged at lower levels and closed unchanged at 11.1 per cent in a liquid market.



Published in The Express Tribune, April 28^th, 2011.