KARACHI
\nAs the first review under the IMF\u2019s $3bn Stand-By Arrangement is set to start on Thursday (today), the rupee maintained a downward trajectory on Wednesday against the US dollar creating uncertainty about the future trend.
\nThe greenback has been appreciating for the last eight sessions but the appreciation of Rs1.18 on Wednesday shook the confidence of the importers and exporters as well.
\nSome currency experts blame banks for reversing the exchange rate trend to make money by increasing the dollar rates.
\n\u201cThis is a false allegation. It is a matter of supply and demand. The supply is shrinking while the demand is on the rise pushing the dollar price,\u201d said Atif Ahmed, a currency dealer in the interbank market.
\nThe State Bank of Pakistan (SBP) reported the closing price of the dollar at Rs282.65 from Rs281.47 a day earlier, a depreciation of 0.42 per cent.
\nSources in the banking market said that banks are offering higher rates since exporters have stopped selling their holdings. \u201cThe higher offers have changed the market sentiment, which needs to be stopped to check the rupee\u2019s depreciation,\u201d said Zafar Paracha, General Secretary Exchange Companies Association of Pakistan.
\nHe said the supply of dollars decreased in October as the growth in exports was not significant. He recalled that the positive sentiment for PKR was achieved after a crackdown and tough administrative measures were initiated against the illegal currency business in September. \u201cIt should not be wasted,\u201d he added.<\/p>\n
In the open market, the dollar also gained 50 paise to close at Rs283.50. However, the exchange companies said they were regularly selling dollars to banks.<\/p>\n
\u201cThe interbank market is not only feeding the importers but the SBP is also buying dollars for debt servicing,\u201d said a senior banker.<\/p>\n
The central bank is buying greenbacks to keep its foreign exchange reserves at around $8bn level before the talks begin with the IMF.<\/p>\n
Finance Minister Shamshad Akhtar is confident of successfully negotiating with the IMF for the release of the $710 million second tranche on the basis of a better economic performance in the first quarter of the current fiscal year.<\/p>\n","protected":false},"excerpt":{"rendered":"
KARACHI As the first review under the IMF\u2019s $3bn Stand-By Arrangement is set to start on Thursday (today), the rupee maintained a downward trajectory on Wednesday against the US dollar creating uncertainty about the future trend. The greenback has been appreciating for the last eight sessions but the appreciation of Rs1.18 on Wednesday shook the […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-365661","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"\n