February 23, 2007	Friday	Safar 5, 1428

KARACHI, Feb 22: The rupee firmed versus the dollar on Thursday, thanks to healthy foreign exchange inflows, which are likely to keep the local unit steady in coming weeks, dealers said.

The rupee closed at Rs66.65/67 to the dollar, compared to the previous close of Rs60.71/73.

"Dollar inflows have been pretty healthy in recent weeks, and this has supported the rupee," said a local bank dealer.

Dealers said inflows of dollars were sufficient to comfortably meet dollar demand from importers.

"In fact, dollar inflows are sometimes higher than the demand, which is why the central bank has been buying dollars from the market quite regularly," said the dealer.

Dollar inflows have been picking up due to a rise in foreign investment, as well as remittances from overseas Pakistanis.

According to central bank figures, foreign direct investment in Pakistan rose more than 69 per cent to $2.1 billion in the first seven months of 2006-07, compared with $1.24 billion in the corresponding period last year.

Inflows from foreign portfolio investment during the seven months were $697.4 million, up from $400.5 million in the year-ago period last.

"Dollar inflows are expected to hold firm in coming months, which should keep the rupee steady," said a brokerage house dealer.—Reuters