Currency: Rupee firms, overnight rates flat

KARACHI: The rupee firmed further on Friday buoyed by a lack of import payments after days of record lows, but dealers said the local unit is likely to come under pressure in the medium term because of a bleak outlook of the country’s economy. The rupee ended at 89/10 to the dollar, compared with Thursday’s close of 89.10/16. It made a record low of 89.45 on Wednesday. “Next week we might see (a) slight recovery in the rupee because there are no significant payments,” said a currency dealer at a local bank. In the money market, overnight rates closed at the top level of 11.90%, unchanged from Thursday’s close, amid tight liquidity in the interbank market, dealers said.

Published in The Express Tribune, December 10^th, 2011.