KARACHI, March 4: The short-term money rates rose sharply on Tuesday after the State Bank of Pakistan sold 56-day Treasury bills (T-bills) in an outright sale, dealers said.

Overnight call rates ended at 10.40 percent, up from Monday’s close of 9 per cent, and just below the discount rate of 10.50pc.

“Rates rose after the Open Market Operation and are likely to remain range-bound as inflows are scheduled for next week,” said a brokerage house dealer.

The central bank sold Rs4.5 billion in 56-day Treasury bills at 9.45 per cent to primary dealers on Tuesday in an outright sale to mop up funds from the money market.

Dealers said there were inflows scheduled for March 13 from maturing government securities.

In the currency market, the rupee closed weaker at 62.86/90, compared with Monday’s close of Rs62.65/70.

However dealers said the rupee is likely to remain stable in the near-term as inflows of foreign investment and higher remittances from overseas Pakistanis were likely to prevent a sharp decline.

The rupee hit Rs63.11/14 on Feb 16, its weakest level in more than six years, but started recovering when sentiment was lifted by an election on February 18.

—Reuters