Currency: Rupee firms against dollar

KARACHI: The rupee closed firmer at 86.73/78 to the dollar, compared with the previous day’s close of 86.90/96 amid lack of import payments. The rupee made a record low at 87.10 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. Though some support could come from higher remittances from overseas Pakistanis as it rose 38.57 per cent to $1.1 billion in the first month of 2011/12 fiscal year, according to official data. In the money market, overnight rates ended flat at the top level of 13.4 per cent, unchanged from Tuesday’s close and dealers said they were awaiting the result for the treasury bill auction in which they expect the cut-off yields to remain largely unchanged.

Published in The Express Tribune, August 25^th,  2011.