Dollar up in open market as depreciation seems imminent

Dollar in the Open Market was up by 20 paisa to Rs. 107 owing to a fresh wave of rumors that depreciation of the currency may be in the offing.

Yesterday, the State Bank of Pakistan released latest Foreign Exchange Reserve numbers, which fell below 20 billion Dollar mark, comparing the current Reserves against the 3-months import bill, investors are highly skeptical that the Government may have to call upon some donor agency to fulfill the rising need for Foreign Exchange.

According to the Currency dealers, the rate of Dollar in open market during the current week has gained by 40 paisa to reach Rs. 107 owing to the circulation of rumors among the business sector that a depreciation is soon on the table.

They said once the federal minister Ishaq Dar steps down or resigns, the local currency would likely go through a sudden depreciation. They argued that next week will be extremely crucial for the currency. If the week passes on without any changes, the dollar might go through a downward correction, otherwise it is bound to rise.

Rupee in the Interbank remained stable. The interbank rate trading was carried out at 105.42/105.43.