KARACHI, Dec 12: Importers eager to buy dollars went for forward booking with a premium much more than the current rates anticipating that dollar would shoot up once the pressure of the State Bank is softened.

Banks fearing punitive action from the State Bank did not dare to cross the boundary line of Rs60.90 for the greenback but made deals just around the unwritten boundary line set for them.

Rush of importers was visible while the exporters kept avoiding to sell their holdings which fuelled the speculation that a good price was hidden within greenback.

Banks and currency brokers said the dollar was in short supply while the demand remained high through out the day. Brokers said the large banks - Habib Bank, National Bank and United Bank — were ready to sell dollars at Rs60.90.

“The banks which have major exports business were also looking for buying dollars to sell it to their client importers,” said Abid Kaleem, a currency broker.

Forward deals for a month were made at a premium of 15 to 17 paisa which was quite high reflecting the market sentiments about the dollar’s future.

The US dollar’s future against major currencies has been shaky but in the local market the greenback was rising instead of losing against the rupee.

During the last week the dollar plunged 0.8 per cent to a fresh 20-month low at $1.3348 against the euro and shed one per cent to $1.9847 against the pound.

“This is a sign of weak economy as weakness of the rupee reflects the situation better than any thing,” said an economist and analyst.

Most of the currency brokers, bankers dealing in currencies and analysts said the rupee was overvalued and the pressure from the State Bank had kept the situation ‘unchanged.’

However, there were wide differences over the ‘overvaluation’ of the rupee. “In view of the dollar performance against major currencies, it looks that the rupee should not be depreciated to any significant level. It is only shortage which builds some pressure on importers to buy more dollars and it gained some premium in forward booking,” said Asif Ahmed, a currency broker.

He said the pressure would be eased off once the exporters would start selling dollars in full swing.

“The SBP will continue to keep vigilant eye and a gradual release of dollars is possible by next year once all the accounts would be settled by the end of this month.