After witnessing its largest jump of the year on October 9 (yesterday), the dollar closed at Rs133.8 in the interbank market on Wednesday.
The dollar rose Rs9.26 to a new high of Rs133.6 on Tuesday after news of Pakistan seeking an IMF bailout reached the market. However, it rose only 10 paisa today.
In the open market it was traded above Rs135, some exchange companies even sold it for Rs138 during the day.
On Monday, Prime Minister Imran Khan had given a green signal to his finance team for an IMF programme. The IMF loan comes with conditions including a free float exchange rate as opposed to a managed exchange rate. This means that the central bank will not intervene in the market, and let market forces determine the actual rate of the US dollar against the Pakistani rupee.
The government’s decision to seek a bailout from IMF affected market sentiments and people went on a buying spree, which drove exchange rate up.
Majority of experts say the dollar is likely to trade in the range of Rs135, but some argue it can go past Rs140.