Karachi: The dollar hit a break at the end of the business week, but the rupee depreciated by 0.82 percent against the dollar during the five-day period.
Fresh conditions from the IMF, the government’s condition not to borrow directly from banks and the delay in the loan agreement kept the dollar flying in weekly trade, with the dollar crossing Rs 282 in one session.
The dollar was buoyant at the start of the week, but reversed into reverse in the final two days. A 4.9% increase in remittances from overseas Pakistanis through legal channels helped the dollar break at the end of the week, but the rupee depreciated by 0.82% against the dollar in the five-day trading week.
Dollar, pound, euro, riyal rose in both foreign exchange markets during the weekly trade. The interbank rate of the dollar crossed 280 rupees while the open rate reached the level of 283 rupees.
During the weekly trade, the dollar in the interbank market closed by a total of Rs 2.31 to close at Rs 280.7, while in the open market, the dollar increased by 50 paise to close at Rs 283. Similarly, the interbank rate of the British pound increased by Rs 1.94 to Rs 335.66, while the value of the British pound increased by Rs 1 to Rs 335 in the open market.
The value of the euro rose by Rs 2.19 to Rs 297.56 in the interbank market, while the value of the euro rose by Rs 4 to Rs 297 in the open market. The value of Rial increased by 59 paise to Rs 74.78 in the interbank market while the value of Rial increased by 10 paise to Rs 75.10 in the open market.
Last week too, exporters were cautious in cashing their export earnings remittances. In the two sessions at the end of the week, the interbank dollar supply also increased. Importers continued to suffer due to non-opening of LCs of raw materials. With China’s support, the government’s foreign exchange reserves increased for the fourth week. Economic indicators turned slightly positive due to increase in foreign exchange reserves. Under the rationalization policy, the value of the dollar remained dependent on market forces.
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