KARACHI: Despite an inflow of $2 billion into the account of the State Bank of Pakistan (SBP), the exchange rate remained vulnerable as the local currency lost 0.8 per cent or Rs1.3 per dollar in the interbank market in the last 10 days.
Currency dealers said the falling SBP’s foreign exchange reserves due to massive debt repayments kept the rupee under pressure.
The dollar price fell to Rs174.47 on Feb 7 but since then it maintains a bullish trend against the local currency and traded at Rs175.86 on Feb 18.
“Higher demand from importers is a key factor for dollar appreciation. The import bill could not be controlled mainly on account of very high oil prices on the international market,” said Atif Ahmed, a currency dealer in the interbank market.
He said the demand for dollars remained high despite several steps taken by the federal government and the SBP to bring down the import bill.
“The dollar has the potential to appreciate more…