June 06, 2008	Friday	Jamadi-us-Sani 01, 1429

KARACHI, June 5: Pakistani banks borrowed Rs6.185 billion from the central bank’s discount window on Thursday in an inter-bank money market that was tight because of a lack of cash inflows.

Overnight call rates ended at 11.90 per cent, unchanged from Wednesday’s close and just below the 12 per cent discount rate at which banks borrowed funds from the State Bank of Pakistan three-day repo facility.

“There was an outflow of Rs65.75 billion from the

T-bill auction against a inflow of Rs60 billion,” said a brokerage house dealer.

The central bank on Wednesday sold Rs3.13 billion of six-month bills, Rs6.73 billion of 12-month paper, and Rs53.6 billion of 3-month paper, after receiving total bids of Rs67.1 billion.

Settlement took place on Thursday.

In the currency market, the rupee closed at 67.35/50 to the dollar, compared with Wednesday’s closing of 67.60/80.

Dealers said there had been some pressure on the local unit because of increased dollar demand from importers but they expected it to stabilise on expectation of fresh inflows of foreign currency in the short-term.—Reuters