KARACHI – Dollar at inter-bank and open market reached to all time highlevel as economists predicting difficulties facing by the government topayback external debt obligations.
Dollar continued its upward journey on the last session before EidHolidays, the opening was somewhat mute but as the demand from thecorporates especially the oil companies increased, the green backskyrocketed.
According to a leading forex dealer at the local bank, the dollar reachedto 123 rupees but no deal was struck. It moved between 122.25 to 122.75rupee when corporates such as oil marketing companies and refineries huntfor dollars.
The dealer said one of the refineries require nearly 75 million dollars tomeet its import payment which pushed the green back during the period.However, to stem the upward movement, State Bank of Pakistan or the centralbank intervene the forex market and suddenly dollar witnessed some clippingin its value.
From high mark of 122.75 rupee it fell to around 121.20 rupee, but as thedemand from the importers remained glued to the market, the dollar closedaround 121.39 rupee.
Dollar since June 8 has gained momentum and rose by almost 5 percent or Rs5.79 to Rs 121.39. This has increased the burden on the country’s nationalexchequer as the depreciation cost would be higher and to pay externaldebts, the government has to arrange extra Rs 520 billion to reduce debtobligations.
The rupee since December has weakened by Rs 15.89 or 15 percent, additionaldebt obligation amounted to be nearly Rs 1325 billion.In the open market dollar gained almost Rs 1.50 to close around 123.50rupee.