Rupee closes stronger at 86/dollar

KARACHI: In the currency market Friday the rupee firmed to 86.57/62 to the dollar compared with Thursday's close of 86.85/90 amid lack of import payments and on increased remittances from Pakistanis living abroad.

According to official data, remittances rose 25 percent to $3.3 billion in the first three months of the 2011/12 fiscal year (July-June), compared with $2.65 billion in the same period last year.

However remittances fell to $890 million in September, compared with $922 million received in September last year.

In the money market, overnight rates ended at the top level of 11.90 percent amid tight liquidity in the market.

Dealers said there were scheduled outflows of 264 billion rupees ($3.03 billion) and the central bank bought back government paper worth 327.15 billion rupees.

State Bank of Pakistan will remain closed on Saturdays from Oct. 15 as part of the government's plan to ease its power crisis, a State Bank of Pakistan (SBP) official said on Friday. (Reuters)