KARACHI: The dollar gained Rs1.50-1.80 against the rupee in the open market on Wednesday after Pakistan shot down two Indian fighter jets in Azad Jammu and Kashmir.
The movement in the currency markets was an outcome of dollar shortage as buyers flocked to the market and sellers disappeared. The official rate for the greenback as issued by the exchange companies noted an increase of just 50 paisa but currency dealers said the dollar was traded at Rs140.50 to 140.80 in the open market.
“Nothing happened against the exchange rate but the dollar buying created shortage and prices increased in the open market,” Secretary General of Exchange Companies Association of Pakistan, Zafar Paracha told Dawn. He hoped that tensions on the eastern border will simmer down. “There is no need to panic,” he remarked.
However, the dollar in the interbank market also showed rising trend which was surprising for exchange companies operating in the open market. They said the open market usually follow the rates and trend in the inter-bank market.
“It was Tuesday not Wednesday when the dollar went up to Rs139.40 – from Rs139 on Monday – and that too in the last banking hours. In fact, the dollar declined from this high rate and traded at Rs139.35 on Tuesday and fell further to Rs139.10 in the last hour,” said a senior banker dealing in the currency markets.
Banker said there was no reason for increase in the dollar rates except that the State Bank of Pakistan allowed the market to move forward.
