Currency: Rupee and overnight rates flat

KARACHI: The rupee ended flat at 85.93/98 to the dollar, unchanged from Thursday’s close. The interbank currency and money markets were closed on Friday for a bank holiday. The rupee hit a record low of 86.50 in May 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 per cent, compared with the same period last year. In the money market, overnight rates also ended flat at 13.15 per cent, unchanged from Saturday’s close and dealers expect rates to hover around current levels.

Published in The Express Tribune, July 5^th, 2011.