KARACHI: The US dollar once again appreciated on Wednesday and stood at a stone’s throw from crossing Rs200, keeping the policymakers confused over the rapid depreciation that evaded the purchasing power of the local currency.
The inter-bank market reported that the dollar remained in high demand, but what was more concerning was that many importers were unable to open their LCs as they failed to arrange the currency.
The dollar appreciated by Rs2.65 to Rs198.39 in the inter-bank market. The dollar gained 1.34 percent against the rupee, which was one of the most significant rupee depreciations during the current wave of decline.
The open market reported that the dollar was traded at Rs200.50, with an increase of Rs2.50 in the dollar price on Wednesday. However, trading in the open market has shrunk to just 10 per cent compared to a year ago. It is difficult to buy dollars on the open market since a lot of documentation is required.
Bankers said the unexpected large imports have already widened the trade deficit to an all-time high, but the importers were still in line to open LCs.
Published in Dawn, May 19th, 2022