KARACHI: There was no sign of stability in the exchange rate on Tuesday as the rupee lost 1.8 per cent value against the dollar.

Players in both interbank and open markets struggled to assess the extent of the ongoing rupee slide as the currency depreciated on the third consecutive day.

Neither bankers nor currency brokers seemed to have any idea about where the exchange rate was likely to settle.

The central bank, which said last Friday that the sudden movement in the exchange rate was market-driven, did not issue any instruction for banks amidst volatility in the currency market.

Brokers in the interbank market said the State Bank of Pakistan has kept quiet since Dec 8.

The greenback went as high as Rs111.50 during the day in the interbank market and closed at Rs110.50.

Many people complained about the unavailability of dollars during the day. However, Forex Association Pakistan President Malik Bostan insisted that the dollar was available in the open market. Hedging against the devaluation, some money changers asked customers that they should make the rupee payment right away and receive dollars later.

Major victims of the devaluation have been importers whose business is suffering because of fluctuations in the exchange rate. Exporters have also started withholding the proceeds of their exports, which is causing a shortage of dollars, bankers said.

Published in Dawn, December 13th, 2017