Pakistan

Currency: Rupee weakens, overnight rates rise

The rupee ended weaker at 85.18/23 to the dollar compared with Thursday’s close of 84.84/89.

Reuters May 14, 2011 Less than a minute read

KARACHI: The rupee ended weaker at 85.18/23 to the dollar compared with Thursday’s close of 84.84/89 because of import payments.

Dealers said incoming remittances should support the rupee and it should remain around these levels.

Remittances from overseas Pakistanis increased by 23.81 per cent to more than $9 billion in the first 10 months of fiscal year 2010-11, and in April $1.03 billion was received, according to the State Bank of Pakistan.

In the money market, overnight rates rose to the top level of 13.90 per cent, compared with the previous day’s close of 11 per cent amid tight liquidity in the interbank market, which dealers attributed to payments.

Published in The Express Tribune, May 14^th, 2011.