Dollar remains calm in the kerb

Staff Report

KARACHI: The US currency remained stable in the kerb on Friday, closing at Rs 57.98 for buying and Rs 58.03 for selling. It maintained its current standing against the rupee.

“The dealers at the kerb market are selling dollars on higher rates than the interbank market for last four days, despite the negative demand in the kerb,” said a dealer at Dubai Forex, a local moneychanger outfits. And though the supply for the dollar remains huge in the kerb market, buyers seemed reluctant to purchase it, he said. “The dollar would fall in the kerb market but has maintained its value because of the shortage at the counters since the last few days,” he said.

“The trade volume remained low at the counters and there is still lack of interest from investors and sellers,” said a dealer at Khanani and Kalia International, a local money changer. “Though no one is buying it, there are people who are willing to sell dollars,” he said.

All the currencies fluctuated against the dollar in the international markets, he said. The demand for euro, pound sterling and other European currencies is better, he said.

Some other dealers at different money changers said “the dollar opened at Rs 58.03 for selling, but closed unchanged despite fluctuating four to five paisas against the rupee. And since it has been short in the kerb for last few days, it is therefore being sold at higher rates than the interbank market, they said.

The euro closed at Rs 63.75 for buying and Rs 63.85 for selling. It gained 15 paisas against the rupee on Thursday.

Interbank Market: In the interbank market, the dollar closed unchanged due to its normal trading. It closed at Rs 57.92 for buying and Rs 57.93 for selling. Treasury officials at local and foreign banks said there was no demand of the US currency, therefore it is going down in the interbank market. They claimed the State Bank of Pakistan and other institutions are still supporting the US currency.

It may still fall, as there are no major payments coming in the next few days, they said. The officials said banks had made payments of around $15 million to $20 million on Friday, while they received remittances of $25 million to $30 million.

The euro closed at Rs 63.86 for buying and Rs 63.96 for selling. It lost 43 paisas against the rupee.

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