Currency: Rupee weakens, overnight rates up

KARACHI: The rupee weakened to 86.67/72 to the dollar compared with Monday’s close of 86.54/59 because of an increase in import payments. The rupee firmed in the previous trading sessions 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 fiscal year 2011-12 (July-June), compared with $2.65 billion in the same period last year. In the money market, overnight rates rose to the top level of 11.90%, compared with the previous day’s close of between 11.50% and 11.70%, amid tight liquidity in the interbank market.

Published in The Express Tribune, October 19^th, 2011.