Rupee hits all-time low in open market

The rupee hit a fresh record low of 125 against the dollar in the open market on Wednesday due to short supply of greenback, dealers said. The rupee traded at 124.50 against the dollar in the previous session. In the interbank market, the local currency closed stronger at 121.46 to the dollar as compared to the previous closing of 121.73. Dealers said the lack of the dollar sales by individuals and exchange companies compelled the rupee lost more grounds in the kerb dealings. “People are not selling dollars, as they assume the currency to drop further in the interbank market. Demand was there. But, the dollar liquidity is low. People are hoarding foreign currency in that point of time,” said Malik Bostan, president of the FAP. “The currency is under pressure and the central bank is reluctant to intervene in the currency market,” said Zafar Paracha, secretary general of the Exchange Companies Association of Pakistan. Dealers said the rupee is expected to remain under pressure in the period ahead because of the balance of payments concern and pre-election activities.