April 09, 2008	Wednesday	Rabi-us-Sani 2, 1429

KARACHI, April 8: The Pakistani rupee weakened against the dollar on Tuesday on higher demand from importers, particularly for oil payments, but dealers said the local unit should hold steady in days ahead.

The rupee closed at 62.95/99 to the dollar, compared with Monday’s close of 62.85/90.

“There were some bigger payments today, including those for oil imports, which put pressure on the rupee,” said a local bank dealer.

Dealers said foreign investment and higher remittances from Pakistanis abroad ruled against a sharp decline.

“I don’t see a major slide in the rupee’s value, as dollar inflows are healthy and should keep the rupee steady,” said another dealer.Central bank data showed remittances sent home by overseas Pakistanis rose 21 per cent to $4.13 billion in the first eight months (July-Feb) of 2007-08.

The rupee hit 63.11/14 on February 16, its weakest level in more than six years, but started recovering when sentiment was boosted by a generally smooth election on February 18.

In the money market, short-term rates remained firm and dealers said the market was now eyeing a central bank Treasury bills auction to be held later in the week.

Overnight call rates ended at 9.0-9.5pc, little changed from the previous day.-—Reuters