Malik Boostan, Chairman Exchange Companies Association of Pakistan, (ECAP) has said that dollar may stable at Rs 98-99 in open currency market to avoid speculation and artificial appreciation of Pak rupee against the greenback. Talking to Business Recorder, he said that although Pak Rupee on Wednesday further appreciated against US dollar, however, unlikely to further strengthen as it has already gained over 6 per cent during last ten days.
"Now, we are expecting a huge demand from domestic buyers as a large number of customers are waiting for stability in the market," he said and added that exchange companies have sufficient dollar supply and can cater the rising market demand. On Wednesday, exchange companies have surrendered over $15 million in interbank market, he informed. "We think that Rs 98-99 is real value of dollar and it will sustain at this level, however we will be vigilant to monitor the market to avoid any speculation," the chairman ECAP said. He said that new demand will be raised from students for fees, medical bills and visit purposes, while there may be some buying for investment point of view.
Commenting on the appreciation of Pak rupee, Eman Khan of Aerari said this is a very sharp appreciation of the Rupee and will seriously impact all export- oriented industries, and may even risk closure of a few. "We have a huge trade deficit and current account deficit, our reserves are at four weeks of import and we have taken a $6.6 billion loan from the IMF. Why would we want to make our currency strong at the expense of risking exports and growth," said Eman Khan of Aerari "Having breached the important level of 100, the real challenge now would be to sustain the Rupee at these levels," she added. With greater foreign interest in the stock market and record remittances, analysts will be looking for fresh data on inflation and growth in exports to gauge future direction, she mentioned.
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