Currency: Rupee firms, overnight rates rise
The rupee strengthened to close at 85.88/93 to the dollar
Reuters
July 06, 2011
Less than a minute read
KARACHI:
The rupee strengthened to close at 85.88/93 to the dollar, compared with Monday’s close of 85.93/98, amid a lack of import payments, dealers said. The rupee hit a record low of 86.5 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 fiscal 2010-11, an increase of 25.2 per cent compared with the same period last year. In the money market, overnight rates rose to the top level of 13.9 per cent, compared with Monday’s close of 13.15 per cent, amid tight liquidity in the interbank market. Dealers said there were scheduled outflows amounting to 26 billion rupees ($302.3 million) due on Thursday.
Published in The Express Tribune, July 6th, 2011.
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