Dollar rallies on strong demand
The rupee remained under pressure against the dollar as strong demand from importers pushed the greenback Rs1.35 higher in the interbank market on Thursday.
Currency dealers in the banking market said that the dollar has transitioned from a managed system to a free zone, which may result in further rate increases.
The closing price of the dollar was quoted at Rs285.15, up from Rs283.80 a day earlier.
Since its lowest price of Rs275.45 on July 4, the dollar has appreciated by Rs9.70 against the local currency. The inflows from the International Monetary Fund (IMF) and other sources temporarily stabilised the dollar’s price.
“The pressure is mounting due to free imports, rush for the dollar is high,” said Atif Ahmed, a currency expert and dealer in the banking market.
Rupee dips to 285.15 even as SBP reserves surge by $4.2bn