Currency: Rupee firms, overnight rates fall

KARACHI: The rupee firmed to 85.75/80 to the dollar compared to Friday’s close of 85.87/92, amid a lack of import payments. 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 crossed $10 billion for the first time, hitting $10.1 billion in the first 11 months of the 2010-11 fiscal year, an increase of 25 per cent compared with the same period last year. In the money market, overnight rates ended at 13.75 per cent, compared to Saturday’s close of 13.90 per cent and dealers expect rates to remain on the higher side due to year-end payments.

Published in The Express Tribune, June 21^st, 2011.