Currency: Rupee, overnight rates flat

KARACHI: The rupee remained flat at 86.66/71 to the dollar, little changed from the previous day’s close, amid steady import payments. The rupee has firmed in the previous trading sessions on healthy remittances from Pakistanis living abroad, but dealers said a widening current account deficit means that the local currency can see some downward pressure in days ahead. Pakistan’s current account deficit surged to a provisional $908 million in September, compared with a deficit of $201 million in the previous month. For the July-September quarter, the deficit was a provisional $1.209 billion, compared with $597 million in the same period last year, according to data from the State Bank of Pakistan. In the money market, overnight rates remained unchanged at the top level of 11.90%, amid tight liquidity in the interbank market.

Published in The Express Tribune, October 20^th, 2011.