As far as the last three days go, the Rupee might have found its equilibrium in the interbank market at 110.50. PKR opened at 110.50 at the day break, falling to 110 during the first 45 minutes. However, it has continuously traded in a narrow range of 110.20/50 since then.
Dollar in the interbank market reached to its all-time high during the last few as demand from importers surged after exporters waited for Rupee to depreciate further. The traders and banks have been relatively kept in the unknown regarding the rate for Dollar as SBP left the rates go to find market equilibrium.
The sufferers from the said depreciation have been the importers who have been ghastly watching the exchange rate. To make the matters worse for Supply side, exporters have started to withhold their export proceeds resulting in an acute shortage of dollars in the market.
PKR closed the session at 110.50/60.
The Dollar rate hike is expected to have reaching implications on the economy. Fuel prices (Petrol, Diesel, and Gas) prices are expected to increase by 8- 10 % in the first week of coming year as international prices continue to increase at a steady pace.
