Currency: Rupee weakens, overnight rates decline

KARACHI: The rupee ended at 86.95/99 to the dollar, compared with Tuesday’s close of 86.80/86, despite an increase in remittances from overseas Pakistanis, because of increased import payments. According to official data, remittances rose 23.24 percent to $4.3 billion in the first four months of 2010/11 fiscal year (July-June), compared with $3.50 billion in the same period last year. Remittances rose to $1.02 billion in October, compared with $855.11 million received in October last year. In the money market, the overnight rate ended at its floor of 9%, compared with the previous day’s close of between 11.50% and 11.75%, amid increased liquidity in the interbank market.

Published in The Express Tribune, November 17^th,  2011.