Currency: Rupee firms, overnight rates rise

KARACHI: The rupee firmed to 86.74/79 to the dollar, compared with Wednesday’s close of 86.80/85, amid a lack of import payments. The rupee had firmed in the previous trading session on healthy remittances from Pakistanis living abroad, but dealers cautioned a widening current account deficit means that the local currency could experience 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. In the money market, overnight rates ended higher at 10.50%, compared with the previous day’s close of 9.10%, because of tight liquidity in the interbank market.

Published in The Express Tribune, October 28^th, 2011.