Karachi: Due to the demand of commercial and industrial sectors due to concerns regarding the situation after the establishment of the caretaker government, the advance of the dollar continued on Monday due to which the interbank rate of the dollar exceeded 287 rupees while the open rate also came to the level of 293 rupees.
According to Express, the dollar continues to appreciate with speculators reportedly moving to leave the exchange rate to market forces to meet the IF conditions. The dollar fell 34 paisa to Rs 286 47 paise at one point in the early session of the interbank market on Monday, but the greenback resumed its advance on intermittent fresh import LCs and increased demand for containers docked at ports.
As a result, the value of the dollar increased by Rs 1.39 to Rs 288.20 at one point, but at the close of business, the dollar closed at Rs 287.92 with an increase of Rs 1.11 in the interbank market. Similarly, in the open currency market, the dollar closed at Rs 293 with an increase of Rs 2.
It is worth noting here that despite China’s agreement to reschedule $2 billion in debt and an increase in foreign exchange reserves, the dollar continues to advance.
The dollar is appreciating as speculators reportedly move to meet IMF conditions, leaving the exchange rate to market forces. After the agreement with the IMF, the inflows that were supposed to come to the country have come, so now more inflows will be able to come gradually.
Market sources say that uncertainty over future conditions coupled with requisite demand for new import LCs and containers berthed at ports has also led to dollar advances from panic buying by commercial and industrial sectors.
Experts say that the current account has been in surplus for the last 4 months, while this month the current account is heading towards deficit again. Experts say that lifting the ban on imports was both a compulsion and a necessity for the country, the demand for dollars for these needs is constantly increasing.
It should be noted that the IMF has also predicted that there will be a current account deficit worth 6.4 billion dollars in the fiscal year 2024, which was 2.5 billion dollars in the fiscal year 2023. Therefore, the forecast of an increase in the current account deficit in the coming years indicates that the demand and flight of the dollar will continue during the next five years and the rupee will continue to devalue gradually.
The interbank market is still moving in the above direction as the IMF has imposed a condition to maintain a market-based exchange rate and the same policy is being implemented in the market, which has put the rupee under pressure and the value of the dollar is increasing due to excess demand in the foreign exchange markets.
The IMF has also predicted an average dollar rate of Rs 306 in the fiscal year 2024, which indicates that the rupee will gradually depreciate against the dollar.
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