KARACHI: Pakistani rupee’s climb against the US dollar continued on Friday as the US currency traded as low as Rs 96.10 in the inter-bank and Rs 98.20 in the open market. The rupee has appreciated by 13 per cent over the past few months. There is no sign yet that the trend will change soon.
Currency dealers in the inter-bank market said banks were suffering losses because of the unpredictable exchange rate and saw no end to rupee appreciation.
Dollar inflows remained very high despite regular payments, including for oil, by the private sector. Bankers attribute the higher inflows coming into the market of export proceeds, higher remittances and loans and payments coming from bilateral and multilateral sources. Investors are selling the dollar because they see foreign exchange reserves at the higher side.
The successful launch of Eurobond by Pakistan, which fetched $2 billion instead of an estimated $500 million, put enormous pressure on the exchange rate.
The open market also saw a sharp reduction in the value of dollar as it lost Rs 1.5. The greenback declined to Rs 98.20 and at some places even below Rs 97.50. There were no buyers and exchange companies deposited most of their holdings in banks.
Analysts and currency watchers cautioned that the rupee’s sudden appreciation could be dangerous for export and export-related industries.
