KARACHI: The exchange rate remained stable on Thursday with slight fluctuations in the interbank market.

The dollar set at Rs110 against the rupee on Wednesday. This was the first sign of stability in the exchange rate after the local currency lost a massive 4.7 per cent of its value in a week.

The dollar in the interbank market opened with higher rates on Thursday touching its peak of Rs110.40, but mostly remaining at Rs110.

Dealers said the local currency dipped even below Rs110 and traded at Rs109.90, though for a short time.

Stability in the dollar rate for the past two days has created hope for stakeholders that it may not go further higher. However, most dealers and analysts are still doubtful of the situation.

Dealers were unclear about how much devaluation is required to control rapidly increasing imports and boost exports. They said the two-way approach to devalue the rupee would not work. In the past, the local currency was devalued several times but exports failed to meet goals.

They said costly dollar could reduce imports.

Published in Dawn, December 15th, 2017