Summary The dollar is being traded as low as Rs124.30.
LAHORE (Dunya News) – The dollar on Tuesday continued to lose its value against the rupee after falling further by 80 paisas in the inter-bank and Rs3 in the open market.
The dollar is being sold cheaper in the open market as compared to inter-bank. It is being traded as low as Rs124.30 in inter-bank and Rs121 in open market.
In two days, the dollar has dipped by Rs3.56. The devaluation of US dollar has increasded its supply in the market.
The development has brought the first significant strengthening in years for the rupee, which has weakened more than 20 percent since December after four separate devaluations by the central bank.
Karachi-based brokerage Intermarket Securities said weekend publication of full results of the July 25 election may have also helped sentiment, as did media reports of possible inflows from Saudi Arabia.
But the rupee’s advance might be short-lived, given Pakistan’s economic problems, analysts said.
“Short-term flows aside, it is difficult to see the (rupee) sustaining its pullback for long,” Intermarket Securities said in a note.
Many analysts expect Pakistan to turn to the International Monetary Fund for a bailout, which is expected to be in excess of $10 billion, according to local media reports.
