Currency: Rupee eases, overnight rates rise

Remittances sent by overseas Pakistanis crosses $10 b: Official data.

KARACHI: The rupee eased to 85.84/89 to the dollar on Thursday, from 85.80/85 the previous day, amid a steady dollar demand from importers.

The rupee hit a record low of 86.50 last month, but dealers said the local unit is expected to stay largely 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, hitting $10.1 billion in the first 11 months of financial year 2010-11, an increase of 25 per cent compared with the same period last year.

In the money market, overnight rates rose to 13.9 per cent from 11 per cent a day earlier, following net outflows of more than Rs55 billion ($640 million) from the market, dealers said.

Published in The Express Tribune, June 17th, 2011.