KARACHI: The rupee recovered a 100 paisa against the dollar on Wednesday in the open market to close at 88.50/88 to add to the 90 paisa recovery of Tuesday.
However, the rupee shed five paisa on Wednesday in the interbank market to close at 87.42/45 compared to Tuesday’s 87.38/43.
Talking to The Express Tribune, Exchange Companies Association of Pakistan Chairman Malik Bostan said the gap between interbank and open market rates had now decreased to 100 paisa. The open market rate is expected to reach the level of the interbank rate in the next one or two days.
Bostan said that after the panic buying of the dollar, mainly from currency hoarders, the dollar surged to Rs90.50 on Monday in the open market. “The situation changed when the rupee recovered 90 paisa on Tuesday and further 100 paisa on Wednesday,” he said.
“The State Bank of Pakistan injected dollars into the market on our request, which quickly stabilised the dollar rate,” he said, adding that panic buying was because of three reasons: high import payments at the end of the month, Pakistan-US political tensions and the large amount of Rs500 notes that people exchanged for dollars.
According to an SBP notification, old Rs500 notes will no longer be exchangeable after October 1.
Money dealers believe that another reason the rupee is under pressure is that the government has refused to seek a new IMF loan programme.
Published in The Express Tribune, September 29th, 2011.
COMMENTS
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ