Currency: Rupee firms, overnight rates higher
rupee firmed to 86.48/53 to the dollar
KARACHI:
The rupee firmed to 86.48/53 to the dollar on Monday from 86.62/66 on Friday, amid soft dollar demand from importers. “There was not much of a demand for the dollar, so we saw the rupee gaining value,” said a bank dealer. Dealers said healthy remittances from Pakistanis living abroad were also supporting the rupee, but cautioned a widening current account deficit means that the currency could experience downward pressure in the days ahead. The current account deficit surged to a provisional $908 million in September, compared with a deficit of $201 million in the previous month. The deficit for the July-September quarter 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 ended higher at around 11.75%, little changed from Friday’s close, and dealers said the market was now eyeing Wednesday’s fortnightly treasury bill auction.
Published in The Express Tribune, November 1st, 2011.
The rupee firmed to 86.48/53 to the dollar on Monday from 86.62/66 on Friday, amid soft dollar demand from importers. “There was not much of a demand for the dollar, so we saw the rupee gaining value,” said a bank dealer. Dealers said healthy remittances from Pakistanis living abroad were also supporting the rupee, but cautioned a widening current account deficit means that the currency could experience downward pressure in the days ahead. The current account deficit surged to a provisional $908 million in September, compared with a deficit of $201 million in the previous month. The deficit for the July-September quarter 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 ended higher at around 11.75%, little changed from Friday’s close, and dealers said the market was now eyeing Wednesday’s fortnightly treasury bill auction.
Published in The Express Tribune, November 1st, 2011.