Currency: Rupee weakens, overnight rates rise
In the money market, overnight rates rose to close at the top level of 13.9 per cent.
Reuters
May 19, 2011
Less than a minute read
KARACHI:
The rupee ended weaker at 85.54/62 to the dollar compared with Tuesday’s close of 85.47/52 because of import payments. But dealers said lower oil prices and incoming remittances should support the rupee and it should remain around these levels. In the money market, overnight rates rose to close at the top level of 13.9 per cent, compared with the previous day’s close of between 12.75 per cent and 13 per cent. Dealers said the central bank is likely to conduct a reverse repo on Thursday to inject liquidity into the interbank market as there will be a net outflow of around Rs40 billion ($467 million).
Published in The Express Tribune, May 19th, 2011.
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