Exchange Rate at open market volatile after SBP curbs dollar imports

Dollar in open market recorded substantial gain on the Central Bank ruling curbing imports of dollar from the exchange companies.

Dollar in Open Market hit 113 Rupees on back of the last week ruling where by exchange companies could only import around 35 percent against the surrender of small foreign currencies while 65 percent to be managed by the banks.

According to Exchange Dealers arranging dollars by banks taking three to four days which created pressure on the rupee, moreover, the United States President statement and the local response also increased the pressure.

However, a senior exchange dealer said that if the central bank was to revert the decision and allow exchange companies to import dollars against small currencies, dollar will most probably dip against the domestic currency.

Main factor which failed to trigger any alarming bells was that at the interbank the movement of greenback has been quite narrow, during the preceding week, the interbank rate moved in band of 110.48 to 110.52 while on Monday (today) first day of the new week it finished around Rs 110.56, showing a small rise of four paisa.