KARACHI, Oct 16: The US dollar disappeared from the kerb market on Thursday and the inter-bank market witnessed a severe shortage of the greenback pushing the rupee to all-time lows of Rs86-87 and Rs82 in both the markets, respectively.

The dollar is in high demand for more than a year as the rupee began to lose against the US currency, and till Thursday it lost one-fourth of its value.

But currency dealers said devaluation of the rupee has picked up pace as within a couple of days it lost over three per cent in the inter-bank market.

The situation in the open market was worse on Thursday. It was difficult to get even $1000 from one currency exchange company. The dollar was traded at Rs86 and Rs87.

The difference between buying and selling in the open market also widened up to Rs2 per US dollar.

The open market dried up for three reasons. It was observed that currency dealers are involved in hoarding, sending dollars abroad through hundi and selling currency to few known people at a very high rate.

The inter-bank witnessed another record sinking of rupee against the US dollar and was traded at Rs82.

“There is no obstacle in falling of rupee. Country’s reserves are falling, import bills are rising and hopes for immediate inflow of dollars are fading,” said a currency dealer.

About 10 days back the country received $500 million loan from the Asian Development Bank but the inflow failed to make an impact on the market.

The World Bank also announced to help Pakistan with $1.4 billion but the market sentiment remained depressive.

“The only way to stop devaluation of rupee can be the fast devaluation of dollar itself,” said the currency dealer.

Analysts believe that Pakistan has forex reserves for only two months imports and a threat of default is looming over the foreign payments.