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Pakistani rupee firms up; stocks, o/n rates flat
Reuters - Tuesday, October 5
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KARACHI, Oct 4 - The Pakistani rupee firmed a bit on Monday after falling to consecutive lows last week. Dealers said it would likely hold steady around current levels as payment pressures from importers start easing.
The rupee <PKR=PK> ended at 86.20/25 to the dollar on Monday, up from 86.23/27 on Friday.
Before Friday, the rupee had closed on record lows for five days in a row. "Last week saw aggressive dollar buying from importers which pulled the rupee lower," said a dealer at a foreign bank.
"However, the dollar buying has now eased which is likely to keep the rupee steady around the current levels in the near term."
The rupee has lost 1.1 percent of its value this year, after falling 6.17 percent in 2009.
Meanwhile, stocks ended flat in thin trade as most investors remained on the sidelines in the absence of any trigger in the market.
"Most of the trades were in second- and third-tier stocks today, which shows the lack of interest on the part of the bigger investors," said Sajid Bhanji, director at brokers Arif Habib Ltd.
However, dealers said trade may pick up soon on hopes of healthy earnings for the financial quarter ending Sept 30, due to be announced in the coming weeks.
The Karachi Stock Exchange's benchmark 100-share index <.KSE> ended 0.03 percent, or 2.59 points, higher at 10,045.03.
Turnover was 53.28 million shares, compared with 63.82 million shares on Friday.
In the money market, overnight rates ended flat at 10.50 percent, despite the State Bank of Pakistan mopping up 17.0 billion rupees in two separate open market operations. <SBPK10>
(For more Reuters coverage of Pakistan, see: http://www.reuters.com/places/pakistan)
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