KARACHI, March 8: The money market remained tight on Wednesday which kept the overnight rate at above 8 per cent. Market experts said the scarcity of liquidity pushed up the demand for the rupee in the interbank market but the State Bank found the situation comfortable.

Dealers said that the overnight rate was as high as 8.5 per cent and would remain at the same level in the days ahead. They also expected big discounting from the SBP discount window “if the central bank does not inject liquidity in the market.”

However, low liquidity helped the SBP to stabilize the exchange rate which witnessed a jerk in the dollar rates. The US dollar crossed Rs60 a couple of weeks ago but slipped back below Rs60.