Currency: Rupee firms against dollar

KARACHI: The rupee firmed to 87.53/58 to the dollar, compared with the previous day’s close of 87.72/78 to the dollar amid lack of import payments. Dealers expect the pressure to continue after reports that Pakistan will not seek a new loan from International Monetary Fund. The rupee hit a record low of 87.92 to the dollar on Friday Increases in import payments and a negative economic outlook will also continue to keep the local unit under pressure, dealers say. In the money market, overnight rates rose to the top level of 13.40 percent, compared with Wednesday’s close of between 11.0 per cent and 11.15 per cent as there were net scheduled outflows of around Rs40 billion.

Published in The Express Tribune, September 23^rd, 2011.