The dollar rose sharply against the Pakistani rupee on Monday and was trading above Rs151 in the interbank market, which opened for trade after a week-long break on account of Eid.
The US dollar (USD) regained Rs2.24 against the Pakistani rupee (PKR) in the interbank market in the opening hours, and is currently being traded at Rs151.24, breaking the Rs150 psychological barrier here on Monday.
As speculated earlier by market experts the US dollar has started to regain value and continue its upward rally as the Ramadan season has ended.
Earlier, the rupee had hit its record low against the US dollar to reach Rs154 in the open market and Rs153.5 in the interbank market on May 21. But during the last week of May, the Pakistani rupee regained Rs1.42 in its value against the greenback, bouncing back from State Bank of Pakistan’s (SBP) mid rate on May 24, of Rs150.90 to Rs149.53 in the interbank market, reverting down from the Rs150 barrier.
While talking to Profit earlier, Pak Kuwait Investment Co AVP Research Adnan Sheikh said, “People are likely booking profits in dollars and likely investing in high yielding fixed income or equities.
“Dollar’s appreciation drive was only till eid and the US dollar is likely to regain now since the remittance season is over,” he reiterated.
He added, “We saw the rupee gain to Rs147-148 on the back of eid remittances and local speculators booking profits on hoarded dollar, but going forward large payments are due in June which will impact our current account deficit (CAD) and reserves position adversely.”
Currency dealers said that commercial banks’ buying of dollars caused an increase in the demand of dollars today, which naturally upped its price in the interbank market.
The dealers further said that the rising demand and value of dollar in the interbank market dictated the greenback’s value in the open market as well.
Sources within the dealers attributed the rising dollar demand in the interbank market to some external payments. They also said that the oscillation in dollar price during the session was due to uncertainty in the marke
