The Pakistani rupee was again at the receiving end against the US dollar as open-market dealers Business Recorder reached out to quoted rates in the range of 305-310 on Monday evening.
The PKR was being sold at around 310 against the greenback, while buying was being conducted at Rs305, as compared to Rs302 for buying and Rs305 for selling a day ago.
The rupee also lost value in the inter-bank market, and closed at 286.19 against the US dollar on Monday.
Intra-day update: rupee falls against US dollar in inter-bank and open markets
“The currency (seems to have) corrected its course, and market forces are now playing their part to reach equilibrium,” a currency dealer told Business Recorder.
The dealer, however, dismissed the impression of a currency shortage, adding that there is ample supply of US dollars.
Last week, the State Bank of Pakistan (SBP) said it has allowed authorised dealers of foreign exchange to purchase the US dollar from the inter-bank market for settlement of card-based cross-border transactions with international payment schemes such as Visa and MasterCard.
The reaction to the development was a lowering of the US dollar rate in the open market the following day, but dealers Business Recorder reached out to then said the foreign currency remained in scant supply, rendering the gain of nearly Rs20 rather meaningless.
After the initial reaction, the market is “now moving to an equilibrium”, Fahad Rauf, Head of Research at Ismail Iqbal Securities, told Business Recorder.
“The market is adjusting the rates as per demand and supply, which shows that there is a shortage of dollars amid high demand due to Hajj season.
“Moreover, those who have dollars are uncertain due to the delayed International Monetary Fund (IMF) programme. There is no positive sign when it comes to the IMF. Latest trade data also shows that imports have risen, creating fears on a current account deficit,” he added.
Passing from a severe dollar crisis, authorities in Pakistan are scrambling to arrange foreign currency inflow.