Currency: Rupee firms, overnight rates flat

KARACHI: The rupee firmed to 87.18/22 to the dollar compared with Wednesday’s close of 87.20/25 amid lack of import payments. 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 per cent, unchanged from the previous day’s close amid tight liquidity in the interbank market. Dealers said there were scheduled outflows of Rs294 billion ($3.37 billion) due on Friday.

Published in The Express Tribune, October 7^th, 2011.