KARACHI: The exchange rate, which witnessed a high degree of fluctuations in the last session, remained uncertain for the most part of the session on Monday but closed with a slight change.
Different banks and money exchange companies quoted different rates during the session, indicating volatility of the market, rendering slight changes in both interbank and open market.
The State Bank reported the closing rate in the interbank market as Rs137.75, while bankers said the dollar closed at Rs137.65.
“We were not allowed to sell dollar for more than Rs137.65,” said a banker. Bankers acknowledged the role of the State Bank to bring stability in the exchange rate.
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The open market reflected the stability of interbank. Currency dealers said the open market was cautious and dominated by buyers compared to sellers.
The Exchange Companies Association of Pakistan (ECAP) reported the closing rate of open market was Rs138.50 which was 40 paisas higher than the closing rate on last Friday.
Bankers were not sure that the current exchange rate stability would exist for long.
They said the frequent increase in the policy interest rate also has an impact on the exchange rate stability. The money is cheaper for dollar but costlier for buyers who borrow from banks to buy dollars, the said.
Published in Dawn, December 4th, 2018