Currency: Rupee firms, overnight rates flat

KARACHI: The rupee firmed to 86.57/62 to the dollar compared with Thursday’s close of 86.85/90 amid lack of import payments and on increased remittances from Pakistanis living abroad. According to official data, remittances rose 25% 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% amid tight liquidity in the market. Dealers said there were scheduled outflows of Rs264 billion ($3.03 billion) and the central bank bought back government paper worth Rs327.15 billion.

Published in The Express Tribune, October 15^th, 2011.