KARACHI: Currency dealers and experts expect dollar to dip to Rs83 over the next few days.
Dollar lost three rupees over the last few months.
The erosion of dollar value compelled dollar holders, especially the household savers to rush for selling US currency with melting value.
The dollar was traded at Rs83.65-68 in the inter-Bank market on Thursday while in the open market, it traded at Rs83.90 after a long time.
Currency experts and dealers said both inter-bank and open market have been facing the same situation.
“The dollar may fall below Rs83 in the inter-bank market in few days if the current trend of dollar devaluation persists,” said Atif Ahmed, a currency dealer.
The analyst said pressure on dollar has eased due to very low current account deficit compared to last year while the inflow was on the higher side.
They said dollar could see more inflow as a result of Washington talks held last week.
A Pakistani top-level delegation held detailed discussions, including the country’s requirement to continue fight against terrorism.
“Now political tension in the country has also eased up with the 18th amendment giving a sign of strength to continuation of economic policies,” said Atif.
However, currency dealers in open market said dollar sellers were in much higher numbers than buyers.
“It means those who invested in dollars while the currency was going up, have started selling it to get rid off the erosion of dollar value on day-to-day basis,” said Anwar Jamal, an expert and dealer in the open market.
He said ample dollars were available in the market while buyers disappeared with the falling dollar value.
Currency dealers said dollar lost up to Rs3 in just couple of months.
The US currency was traded close to Rs87 in the open market in February.
Experts said it was a big loss to small savers who used to invest when dollar starts taking flight.
“This is also a lesson to them that they should avoid panic buying,” said another currency dealer.
Market experts observed that dollar smuggling to Afghanistan has minimized as difference of rate between Karachi and Peshawar has reduced in the open market.
When dollar smuggling was on the higher side a couple of month ago, the price difference was fairly wide.
Currency experts said foreign exchange reserves reached close to $14.99 billion and it boosted the confidence of buyers, including importers.
Importers are the first to buy dollars in the inter-bank, fearing appreciation of the US currency which makes their import costlier.
When dollar started moving up against the local currency, it was stated by the State Bank that it was due to shifting of oil bills to the private sector. However, dollar is falling now despite high oil prices at $85 per barrel.
