Currency: Rupee firms, overnight rates rise

KARACHI: The rupee ended slightly firmer at 85.93/98 to the dollar, up from the previous day’s close of 86.02/07 as dollar supplies outmatched its demand from importers. The rupee hit a record low of 86.50 last month, and dealers said the local unit is expected to stay largely stable in the medium term because of increased remittances from Pakistanis working abroad. According to official data, 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 25.20 per cent compared with the same period last year. In the money market, overnight rates ended at 13.0-13.9 per cent, up from the close of 11 per cent on Wednesday.

Published in The Express Tribune, July 1^st, 2011.