In the open market, the US dollar reached fresh highs against the rupee and reached the 331 level during trade.
The rupee was quoted at 331 for selling purposes and 328 for buying reasons for consumers in the open market on Friday, up Rs. 5 from the levels of 326 and 323 on Thursday, according to dealers who were contacted.
US Dollar Exchange Price Against Rupee on Friday
However, during Friday’s trade, the Exchange Companies Association of Pakistan (ECAP) published values of Rs. 326 and Rs. 323.
The pressure between banks, according to Malik Bostan, Chairman of ECAP, is raising rates on the open market.
“Rumours circulating in the markets regarding further depreciation of currency are fanning the flames,” he added. “Demand for USD has also risen after import payments have been allowed by the authorities.”
The currency dealer claimed that in order to solve this problem, the government must boost the supply of dollars.
IMF Restrictions
After the government lifted import restrictions, a crucial requirement of the International Monetary Fund (IMF), the currency has experienced new pressure against the US dollar.
Analysts have also claimed that the IMF need to keep a currency difference of roughly 1.25 percent between the interbank and open markets is pushing up rates in the latter.
According to analysts, market speculators are taking advantage of the situation.
In accordance with one of the structural standards established by the Washington-based lender, the difference between rates in the inter-bank and open markets must be smaller than 1.25%.
The difference, referred to as the premium by the IMF in its country report on Pakistan that was released after the Executive Board approved the Stand-By Arrangement, has been growing over the previous few weeks.
To read our blog on “USD cross Rs. 300 mark 1st time in the history of Pakistan,” click here.
