KARACHI, June 17: The US dollar on Monday fell by 20 paisa in the kerb to hit a four-month low against the rupee amid falling local demand from the general investors and steady inflow from the formal sources.

According to Forex Association of Pakistan, the dollar was quoted lower at Rs60 and Rs60.05 for buying and selling, respectively, as compared to Rs60.20 and Rs60.25 at the weekend.

“It is heading to hit new lows below Rs60 against the rupee in the coming sessions in line with the retreat of the gold prices from the all-time peak level of Rs6,300 per ten grams to Rs6,180,” one dealer predicts.

Apart from the absence of buying from the importers to finance their import bills prior to the announcement of the federal budget, the weakness of dollar in the inter-bank dealings also weighed against its value.

On the inter-bank it was quoted below the benchmark rate of Rs60 at Rs59.90 and Rs60.40 for buying and selling, respectively.

“With the national forex reserves being at a record high of $6 billion, the central bank is currently out of the market and the dollar seems to lost an investment charm for the local investors owing to recent bomb blasts close to the US consulate at Karachi,” currency dealers said.