Dollar rate rising in open market
Despite the government pressure to contain the dollar rise against the rupee, the greenback was trading at Rs107.70 in the open market, many currency dealers confirmed today. The gap in the rates of open market and the inter-bank was alarmingly high at Rs2.70 per dollar, which may push the inter-bank to get rid of the forced price of Rs105. Due to influence and pressure from the State Bank, the Exchange Companies Association of Pakistan (ECAP) and Forex Association of Pakistan under-report the greenback price on a daily basis, market watchers said.
According to the data provided by these associations, the greenback was traded as high as Rs106.40-50 on Saturday. One of the leading currency dealers and an office bearer of ECAP confirmed that they provide data under pressure of the government. "We traded dollar at Rs107.60 on Saturday but the dollar has already crossed Rs107 much earlier," said Anwar Jamal, a currency dealer in the open market. "Demand is high while the supply has shrunk especially after the State Bank stopped supplying dollars in the open market," said Zafar Paracha, Secretary General of ECAP. About two months back the central bank started supplying the greenback to currency dealers and asked them to cut its rate by Rs2, but US currency dropped by 50 to 70 paisas only and never came below Rs106.