December 28, 2006	Thursday	Zilhaj 06, 1427

KARACHI, Dec 27: The rupee fell to a 26-month low on Wednesday as importers bought the dollar aggressively to make year-end payments, and dealers said the rupee would remain under pressure in the near-term.

The rupee closed at Rs60.97/99 to the dollar compared with the previous close of Rs60.94/96.

“There is some genuine demand for the dollar in the market at the moment,” said a dealer at a local bank.“Importers are buying the dollar aggressively to clear year-end payments,” he said.

Another dealer said the rupee was expected to remain under pressure in the inter-bank market over the next few days.

In the money market, short-term rates ended flat and dealers said they were likely to remain range-bound near-term.

Overnight call rates ended at around 7.25 per cent, little changed from the previous close.

The State Bank of Pakistan also mopped up Rs29.5 billion under three-day repo contracts on Wednesday, but that failed to lift short-term rates.

“The outflow offset the impact of scheduled cash inflows, and thus did not have much of an impact on rates,” said a brokerage dealer.—Reuters