Currency: Rupee weakens, overnight rates fall

KARACHI: In the currency market, the rupee weakened to 85.75/79 to the dollar, compared with Monday’s close of 85.65/70, following a rise in international oil prices.

The rupee hit a record low of 86.50 last month, but dealers said the local unit may be stable in the coming days because of increased remittances from Pakistanis working abroad. According to official data, remittances sent by overseas Pakistanis crossed $10 billion for the first time and were recorded at $10.1 billion in the first 11 months of the 2010-11 fiscal year, an increase of 25.20 per cent compared with the same period last year. In the money market, overnight rates fell to 11 per cent, compared with the previous day’s close of between 11.45 per cent and 12.15 per cent.

Published in The Express Tribune, June 15th, 2011.