KARACHI: The US dollar resumed its upward rally against the rupee on Friday by appreciating 90 paisa in interbank market to reach Rs140.50.

However, it was selling at Rs141 in the open market amid tight supplies.

Bankers said the dollar started rising and remained as high as Rs140.30, but the exchange companies reported the rate was Rs140.50.

“Though there are many factors, the interbank market played a key role in pushing up dollar rates in the open market,” said President Forex Association of Pakistan Malik Bostan.

Market sources said the dollar was not available in the market while exchange companies were charging two kinds of rates. Those who were buying the greenback by showing their CNICs were getting it at the announced rates but those who did not want to be recognised were paying an additional Rs1.50 to Rs2 per dollar.

During the week ended on Friday, the dollar gained Re1 in the interbank and Rs1.30 in the open market.

“There is currency shortage but dollar is available. The shortage is due to heavy buying of Saudi riyals for the upcoming Ramazan, Umrah and haj season. In the last two days, 5 million riyals were bought from the open market,” said Bostan.

Since there is no surplus riyals in the market, dollar was in short supply, he added. Surplus riyals are exported to Dubai to import US dollars.

Published in Dawn, March 23rd, 2019