Currency: Rupee, overnight rates flat

KARACHI: The rupee ended flat at 85.82/87 to the dollar on Thursday, as steady dollar inflows matched the demand for the currency from importers. 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 fiscal year 2010-11, an increase of 25 per cent compared with the same period last year. In the money market, overnight rates were unchanged at 13.90 per cent in tight liquidity, dealers said.

Published in The Express Tribune, July 8^th, 2011.