Currency: Rupee weakens, overnight rates rise

KARACHI: The rupee ended at 87.01/05 to the dollar, compared with Wednesday’s close of 86.95/99, despite an increase in remittances from overseas Pakistanis. However, increased import payments helped support the local unit. According to official data, remittances rose 23.24% to $4.3 billion in the first four months of 2010/11 fiscal year, compared with $3.5 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. The rupee hit a record low at 87.92 to the dollar in September. In the money market, the overnight rate ended up at between 9.5% and 10.15%, compared with the previous day’s close of 9%.

Published in The Express Tribune, November 18^th,  2011.