Currency: Rupee firms, overnight rates fall
The rupee hit a record low of 86.50 last month
KARACHI:
In the currency market, the rupee firmed to 85.65/70 to the dollar, from Monday’s close of 85.75/80, amid 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 25.20 per cent compared with the same period last year. In the money market, overnight rates ended lower at 13.00 per cent, compared to the previous day’s close of 13.75 per cent as dealers said there were some payments of circular debt that came in the market.
Published in The Express Tribune, June 22nd, 2011.
In the currency market, the rupee firmed to 85.65/70 to the dollar, from Monday’s close of 85.75/80, amid 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 25.20 per cent compared with the same period last year. In the money market, overnight rates ended lower at 13.00 per cent, compared to the previous day’s close of 13.75 per cent as dealers said there were some payments of circular debt that came in the market.
Published in The Express Tribune, June 22nd, 2011.