Rupee strengthens, o/n rates fall

KARACHI: In the currency market, on Tuesday, the rupee firmed to 86.78/85 to the dollar, compared with Friday's close of 86.82/87, amid lack of import payments.

The rupee firmed in the previous trading sessions on healthy remittances from Pakistanis living abroad, but dealers said a widening current account deficit means that the local currency could experience downward pressure in days ahead.

Pakistan's current account deficit surged to a provisional$908 million in September, compared with a deficit of $201million in the previous month.

For the July-September quarter, the deficit was a provisional $1.209 billion, compared with $597 million in thesame period last year, according to data from the State Bank ofPakistan.

In the money market, overnight rates fell to 9.10 percent, compared with Friday's close of between 11 percent and 11.50percent, amid increased liquidity in the interbank market. Monday was a public holiday. (Reuters)