US dollar trades at Rs120.50 in open market
The dollar since Friday last week has gained almost Rs 4.90.
(Web Desk) - An upward march of dollar at the interbank market has slowed down a bit since last two sessions as the market saw some fresh selling of dollars from exporters and demand from importers bogged down.
Dollar on Wednesday mostly traded in the band of 120.20 to 120.50 rupee where during the session it also oscillated between ranging from 120.70 to 120.90 rupee for short duration.
The dollar now have reached new grounds and according to leading head of forex department of the financial institution it appears the third phase of depreciation seems to be over. “With upcoming Eid-ul-Fitr holidays movement in the forex market to be slow and if any appreciation appears it would be nominal”, he explained.
However the dollar since Friday last week has gained almost Rs 4.90 which would likely to inflate prices as the country has been solely dependent upon imported commodities especially the petroleum products.
Care taker finance minister Dr Shamshad Akhtar in a press conference on Tuesday explained why dollar made grounds. She said that market forces should decide the value of dollar, especially when key factors such as import-export parity and inflow of remittances were not healthy.
“If we maintain exchange rate stabilization for a long time, it is not sustainable”, she said. The caretaker finance minister also pointed out that the interim government had no mandate to sign any new agreement or start negotiations with the International Monetary Fund (IMF) for a bailout package, stressing that any decision to that effect should be taken by the upcoming elected government.
(Details by Haris Zamir)
