KARACHI: The US dollar went on the back foot again on Thursday against the local currency, creating a sense of stability in the exchange rate.
The dollar depreciated by 27 paise to Rs204.85 in the interbank market while it lost Re1 to close at Rs205 in the open market.
Currency dealers said there is no panic in the market for dollars while the supply has been increasing as exporters were in hurry to sell out their entire stocks before further decline in the greenback prices.
They said inflows from the International Monetary Funds could further bring down dollar rate, which is a cause of concern for the holders of foreign currencies. Dealers in the open market said that the number of sellers of foreign currencies substantially increased during the last two days.
SBP reserves rise
Meanwhile, the State Bank of Pakistan (SBP) reported that its foreign exchange reserves increased to $10.309bn following an inflow of $2.3bn from China during the week ended on June 24.
Holdings of commercial banks, however, were down by $86 million to $5.887bn during the week. The country’s overall foreign exchange reserves also fell by $1.986bn to $16.196bn.
The SBP foreign exchange reserves could not improve in the outgoing fiscal year instead they fell by $9.764bn during the entire FY22 from its peak of $20.073bn in August 2021.
Published in Dawn, July 1st, 2022
