Currency: Rupee firms, overnight rates flat

KARACHI: The rupee firmed to 86.85/90 to the dollar compared with Wednesday’s close of 87.15/20 amid lack of import payments and on increased remittances from Pakistanis living abroad. According to official data, remittances rose 25 per cent to $3.3 billion in the first three months of the 2011/12 fiscal year (July-June), compared with $2.65 billion in the same period last year. However remittances fell to $890 million in September, compared with $922 million received in September last year. In the money market, overnight rates ended at the top level of 11.90 percent amid tight liquidity in the market. Dealers said there were scheduled outflows of Rs264 billion on Friday.

Published in The Express Tribune, October 14^th, 2011.