Dollar again crosses Rs300 in open market

Once again the dollar breached the Rs300-barrier in the open market on Wednesday, widening the exchange rate differential to over Rs14 compared to the interbank market. Currency dealers said the shortage of dollars was the main reason for the price hike, however, other factors also influenced the exchange rate in the open market. The dollar was traded as high as Rs301 in the open market while the Exchange Companies Association of Pakistan (ECAP) reported the closing price as Rs299.70. This rate was Rs14.30 higher than the interbank rate of Rs285.40 against the dollar on Wednesday. On Tuesday, the rupee remained stable against the dollar and closed at 284.96 in the interbank market.Exchange rate gap with interbank widens to Rs14.30 “There is a shortage of dollars in the open market and it is more serious in other parts of the country compared to Karachi,” said ECAP chairman Malik Bostan. He said the open market rates were surging as banks were reluctant to pay dollars imported by the exchange companies through banking channels after converting other foreign currencies into greenbacks in Dubai.