Currency: Rupee, overnight rates flat

KARACHI: The rupee was almost flat at 86.02/07 to the dollar compared with Tuesday’s close of 86.03/08. The rupee hit a record low of 86.5 last month, and dealers said the local unit could face some pressure due to year-end payments but is expected to stay largely stable in the medium-term because of increased remittances. Remittances topped $10 billion for the first time, hitting $10.1 billion in the first 11 months of the 2010/11 fiscal year, an increase of 25.2 per cent compared with the same period last year, according to official data. In the money market, overnight rates were flat at 11 per cent, unchanged from the previous day’s close and dealers said they were awaiting the result of the treasury bill auction, due later in the day.

Published in The Express Tribune, June 30^th, 2011.