The dollar was traded at Rs103.50 in both markets indicating that the rupee is gaining faster than the market expectations which pushed investors to sell their holdings.
Currency dealers said the sellers got nervous as their holdings value starts eroding.
“All indications suggest that the dollar will fall to Rs102 soon and the local currency will bounce back to Rs100 within a few months,” said Malik Bostan, the chairman of Exchange Companies Association of Pakistan (ECAP). The US doller lost Rs2 in the open market and Rs1.50 in the inter-bank market in the last two days.
He said the State Bank’s governor assured on Friday that the stuck-up export proceeds worth hundreds of millions of dollars would soon land into the country effectively ensuring the US dollar would be set to fall further.