KARACHI: The US dollar kept appreciating against the weak rupee as it traded at Rs164 in the inter-bank market on Monday.
However, the State Bank of Pakistan reported that the dollar closed at Rs163.67.
Since July 1, the dollar appreciated by 3.9 percent.
Dealers said the demand for the greenback was high and the bankers said there was no shortage of dollars but the price is still rising because of fears that the exchange rate would be adjusted at a higher level.
No-one knows what would be the target exchange rate of the government which has already announced it would be okay with 2 to 3 percent current account deficit in FY22.
The dollar went up by Rs1.24 in a single session on Monday to be sold at Rs163.67.
The Exchange Companies Association of Pakistan reported the dollar rate at Rs164 in the interbank market.
The open market reported the dollar price at Rs164.20 with an increase of Rs1.50 on Monday. The currency dealers said the volume of trade in the open market was still thin, but the hike in the dollar price was a reflection of change in the inter-bank market.
Market experts said the record high import of about $6 billion in June looks to have set the import trend, which shook up the ‘stable’ exchange rate. So far, no intervention by the central bank was noted by the market.
Published in Dawn, August 3rd, 2021