Dollar drops in interbank market, rises in open market amid IMF mission review

Karachi:  In the interbank foreign exchange market, the value of the dollar decreased, while an increase was recorded in the open market.

After the review of the IMF technical mission, the approval of $1.5 billion for climate financing, the arrival of the second mission in the first week of March, and the potential approval of the second tranche of the loan program after the mission reviews the economy, there are hopes of inflows ranging from $1 to $2.5 billion in the next 3 to 4 weeks, which led to the dollar strengthening against the rupee once again on Wednesday.

In contrast, the dollar's value saw a limited increase in the open currency market. Thus, the interbank and open markets continued to move in opposing directions.

With the expected inflows, the dollar remained on the decline throughout the trading hours in the interbank market. However, in the final moments of trading, the demand from market forces caused the dollar to close at Rs279.61, down by 06 paisas. On the other hand, in the open currency market, the dollar's value increased by 02 paisas, closing at Rs281.29.

Experts suggest that the demand for foreign exchange in the economy remains high, while there is also pressure from external debt repayments, and these factors are impacting the foreign exchange markets.