Rupee flat at 85.39

KARACHI: Pakistani rupee ended flat at 85.39/44 to a dollar amid dull trade on Monday, but the currency may weaken in coming days. “The rupee may reach 86 by the end of this month,” said a currency dealer.

The rupee, which closed at a record low of 85.45/50 to the dollar last week, has lost about 1.2 per cent this year after losing 6.17 per cent last year and 22.12 per cent in 2008.

In the money market, the State Bank of Pakistan sold Rs18 billion ($210.9 million) of treasury bills on Monday in four-day repo contracts at 10.99 per cent to mop up funds from the money market.

Overnight rates closed at 10.25 per cent, compared to Friday’s close of 10 per cent despite the central bank selling Rs18 billion of treasury bills.

Published in the Express Tribune, June 8^th, 2010.