Currency: Rupee firms, overnight rates flat

Rupee firm to 87.33/38 to the dollar because of a fall in international oil prices.

KARACHI: The rupee firmed to 87.33/38 to the dollar compared with Monday’s close of 87.45/50 because of a fall in international oil prices. However the rupee hit a record low of 87.92 to the dollar last month. A decision by the government not to seek a new International Monetary Fund loan and speculation of a rate cut would likely add to the pressure on the rupee. In the money market, overnight rates were flat at the top end of 13.40%, unchanged from the previous day’s close amid tight liquidity in the interbank market.

Published in The Express Tribune, October 5^th, 2011.