Dollar traded at elevated price in open market

KARACHI: The US dollar is being sold at Rs4 to Rs5 higher in the open market compared to the exchange rates set by the money exchange associations, as the elections are round the corner, it is effecting foreign currency trading.

The buying rate on Monday was Rs130.30. But this didn’t portray the actual situation of the market as various currency exchange companies refused to sell dollar and when they did it hovered around Rs132-135 a dollar.

According to sources, the purchasing rate for US dollar on Monday was Rs130.30, due to which majority of the exchange companies were not in favor to sell US dollar. But eventually the trade was being done and dollar was sold at the rate of Rs132 to Rs135.

The observation shows that, 25% of the sellers and 75% buyers were involved in the unbalancing of currency inflow and outflow. It is expected that after general elections 2018 there is a chance of rupee recovery and its devaluation can be handled, since past 7 months rupee has depreciated to almost 20%.

ALSO READ: Pakistani rupee hits record low at Rs 130

This devaluation of Pakistani rupee by almost 20% has made the life difficult especially for the people who went for Hajj from Pakistan. Since State Bank of Pakistan (SBP) and other banks are not sure related to trading price of US dollar, therefore they had to buy US dollars and Saudi Riyals from the open market provisionally.

Also, the Saudi Riyal has elevated to almost Rs34 to Rs34.50, which was previously at the rate of Rs30 some months ago. This rate is not sure yet, this can be increased more as there is scarcity of Saudi Riyals in the open market.