Currency: Rupee firms against dollar

Dealers said they expect the currency to remain under pressure, as dollar payments are typically higher in July-August

KARACHI: The rupee closed firmer at 86.82/87 to the dollar, down from the previous day’s close of 86.73/78, amid steady dollar demand from importers. 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. Some support, however, could come from higher remittances as they rose 38.57 per cent to $1.1 billion in the first month of 2011/12 fiscal year, compared with $791.18 million in the same period last year, according to official data. In the money market, overnight rates ended flat at the top level of 13.4 per cent.

Published in The Express Tribune, August 26^th,  2011.