Currency: Rupee firms, overnight rates down

KARACHI: Pakistani rupee firmed to 85.59/64 to the dollar on Wednesday, from Tuesday’s close of 85.65/70, 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 data, remittances crossed $10 billion for the first time, hitting $10.1 billion in the first 11 months of fiscal year 2010-11, an increase of 25 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 13 per cent as dealers said there were some payments of circular debt that came in the market.

Published in The Express Tribune, June 23^rd, 2011.