KARACHI: The currency markets were volatile on Monday as the US dollar fell to Rs157 but recovered at the day’s end with a loss of just 26 paisas.

Currency dealers in the inter-bank market said the dollar was traded as low as Rs157 during the day, losing around Rs3 from the previous session.

However, it recouped initial losses to close at Rs159.91 against Rs160.17; ending the session with a slip of just 26 paisas.

The dollar was trading at Rs159 on Mar 24 but had appreciated as high as Rs167.9 in the first week of April mainly on account of hot money outflows.

However, the greenback started falling against the rupee following an improvement in inflows like higher remittances, foreign direct investment and additional support of $1.39 billion from the International Monetary Fund to fight against Covid-19.

“We are not sure why the dollar fell sharply but there were few buyers in the market. It may be the selling pressure which forced the dollar to depreciate against the local currency,” said a currency dealer on Monday.

Moreover, he said that since imports have also dropped, demand for dollars has been declining.

Published in Dawn, May 5th, 2020