Currency: Rupee weakens, overnight rates rise

KARACHI: The rupee fell on Friday amid higher dollar demand from importers, but dealers said the rupee should hold steady next week as no major import payments are scheduled. The rupee ended at 87.14/18 to the dollar, weaker than the previous day’s close of 87.01/05. “There was a payment of around $60 million for a refinery, and since there were no major inflows today, it pulled the rupee lower,” said a dealer at a foreign bank. “However, there are no major payments scheduled next week, therefore I think the rupee will hold steady for now,” he said. Dealers said rising remittances from overseas Pakistani were also helping the rupee avoid a bigger fall despite higher import payments. In the money market, overnight rates rose to close at 11.75%, from around 10% on Wednesday, amid a shortage of funds.

Published in The Express Tribune, November 19^th,  2011.