Rupee recovers from low, overnight rates flat

Rupee firmed slightly today after falling to a record low for five consecutive sessions as payments for imports fell.

KARACHI:
Rupee firmed slightly on Friday after falling to a record low for five consecutive sessions as payments for imports fell.

A currency dealer said the rupee traded at 86.30 to the dollar, compared with its record low of 86.33 on Thursday.

The rupee ended at 86.23/27, firmer than Thursday’s close of 86.26/31.

Dealers said that even though there had been some foreign inflows, this was not enough to help strengthen the rupee, and that they expect it to weaken further.


The rupee has lost 1.13 per cent of its value this year, after falling 6.17 per cent in 2009.

Stocks ended higher as investors bought shares on hopes of healthy earnings for the financial quarter ending September 30.

In the money market, overnight rates ended flat at 10.50 per cent, despite the State Bank selling Rs43 billion ($499 million) worth of treasury bills to mop up liquidity.

Published in The Express Tribune, October 2nd, 2010.
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