Currency: Rupee recovers from record low

KARACHI: The rupee closed slightly firmer at 86.90/96 to the dollar, compared with the previous day’s close of 87.00/07, a record low closing. “The rupee was traded at 87.09 to the dollar today,” said a currency dealer at a foreign bank, compared with a record low of 87.10 made on Monday. Dealers said they expect the currency to remain under pressure, as dollar payments are typically higher in July and August because of stronger oil demand and debt payments. Stalled payments from an International Monetary Fund (IMF) bailout programme are also negatively impacting the rupee. In the money market, overnight rates ended at the top level of 13.40 per cent, compared with Monday’s close of 13.15 per cent  amid tight liquidity in the interbank market.

Published in The Express Tribune, August 24^th,  2011.