KARACHI: The currency market continues to vacillate, and the greenback was traded at 15-month low in the inter-bank on Thursday.

In the open market, a sudden increase in sellers was witnessed which sent the price below Rs100.

Currency dealers and experts said the local currency is building pressure to send back the dollar to an ‘unknown destination.’

The dollar was traded as low as Rs96.80 while it closed at Rs97 in the inter-bank. It was 15 months low.

The open market for the first time in few weeks fell below Rs100 at Rs99.60.

“We are totally confused about fair price of the dollar and what will be the ‘trusted price’ for US currency in the coming days or weeks,” said Atif Ahmed, a currency dealer in the inter-bank market.

Currency experts observed that the launching of Eurobond, which initially was meant for $500 million and which finally fetched $2 billion, sent strong signals in the market supporting the local currency against the dollar.

Dealers said that unexpected high demand of Eurobond made it clear that doors have opened for inflow of foreign exchange, leaving no chance for speculators to manipulate price on account of low reserves.

They said inflow of dollar from IMF, Eurobond and multilateral sources is bound to increase reserves of the country which are currently close to $10bn.

“In the past few months, we have seen rupee touching a 15-month high, appreciating by almost 12 per cent, with more possible gains as other inflows also started materialising,” said Faisal Mamsa of Landmark Capital.

The open market, which did not reflect the low price trend in the inter-bank, also received pressure from local currency and the dollar was traded as low as Rs99.60 and was easily available in the market.

During the last few weeks, dollar price did not follow the trend in the banking market and was traded as high as Rs103. It continued to trade dollar above Rs100, but the price fell after launching of $2bn Eurobonds.

“Sellers were higher than buyers in the open market and it was a reflection of Eurobond pressure, making it clear that there would be no more shortage of dollars in the country,” said Anwar Jamal, a currency dealer in the open market.

Analysts were unable to trace the reasons of the depreciating trend, but they found it easy to say that the rupee may gain more, not even thinking about dollar appreciation.

“Under technical analysis, the dollar is in the over sold region, but the next support is at 96.60 and if it breaches that, the next level is at 95.50,” said Eman Khan of Aerari, an application that tracks currencies.