KARACHI, Feb 6: The high demand and low supply pushed the dollar against the rupee to its highest level since September 2001.

However, currency dealers said the rupee might see some appreciation on Thursday as market was expected to receive more supply of the greenback.The dollar traded at Rs62.85 on Wednesday against Rs64 it touched in September 2001.

“The currency market, since its closure on Saturday, will actually open on Thursday,” said a currency dealer, adding when the New York market opened on Monday, the Pakistani market had already closed and Tuesday was a holiday on account of the Kashmir Day.

The dealers said that the exporters did not send their export proceeds while some of them considered it as an appropriate time to stop supply and gain more.

“The real impact of the dollar will be visible on Thursday as more inflow of dollars is expected,” said Khalid Amin, a currency dealer.

However, the losing trend of the rupee against the greenback remained the strongest factor behind the new low since 2001.

Despite higher trade deficit dominated by higher oil bills, the country’s foreign exchange reserves are still at $15 billion.

The high reserves have been providing strength to rupee, with the support of the State Bank.

Dealers said that the SBP was not willing to provide additional support for the strength of the rupee as it had been doing for a decade.

However, analysts said that weakening rupee was the reflection of a weaker economy. They said the weakening rupee had created panic among importers who used to book dollar in future at much higher rates.

A senior banker said: “Banks’ Nastro accounts have exhausted and no bank has reserves in its overseas branch. This is also one of the reasons for lesser availability of dollar and its appreciation against the rupee.”