KARACHI: The US dollar appreciated by one per cent against the local currency in a single session to close at Rs161.48 on Monday, with the nine-month high leaving the exchange rate unstable just ahead of the market closure for Eidul Azha.
The sudden jump in dollar demand has caught the currency market by surprise. Currency dealers in the inter-bank market said the dollar was traded high throughout the day while it closed at Rs161.48.
On Friday, July 16, the dollar closed at Rs159.94 against the rupee. The dollar gained Rs1.54 on
Monday — a gain of almost 1pc. The greenback was at Rs161.15 on Oct 23, 2020.
Unexpected jump in greenback demand surprises many
Currency dealers associated the big appreciation with an increase in the demand for the dollar in the inter-bank market. Interestingly, there is no shortage of the greenback in the open market. The surge in imports has widened the trade gap putting pressure on the…