KARACHI: The rupee started the week on a weaker note in both currency markets on Monday, weighed down by a diminishing supply of the dollars, dealers said.
The domestic currency dropped by Rs8 against the dollar in the open market from Rs300/dollar on Friday, according to the rates provided by the Exchange Companies Association of Pakistan (ECAP). The dealers stated that the rupee’s open market rate was between 305 and 310 per dollar.
In the interbank market, the local unit closed at 286.19 to the dollar, 0.18 percent down from the previous close of 285.68. A dearth of dollars, according to ECAP general secretary Zafar Paracha, was the cause of the rupee's falling value in the open market. Due to customers' reluctance to sell dollars to exchange companies, there are now lesser dollars available.
“After the central bank let the banks buy dollars from the interbank to settle card-based transactions, we had hoped that the rupee would remain stable. However, it appears that the move didn't work and the rupee has come under further pressure,” Paracha said. “Because so many import payments are made through the hawala/hundi route, pressure on the open market is still present. The rupee was being traded at 320 per dollar in the grey market.”