It has been relatively stable for around two weeks
The US dollar was trading above Rs139 against the rupee when the market opened on Wednesday.
The greenback has been hovering at this level for more than two weeks, an indication that it has achieved stability after keeping buyers and sellers on their toes throughout 2018, one of the most volatile years in terms of exchange rates fluctuations.
Since hitting its all-time high of Rs140.3 in November, the dollar had been trading in a close range of Rs139 to Rs140 and showed no major fluctuations unlike rest of the year.
In the outgoing year, the dollar appreciated by Rs4 or more in one day at least on five occasions and fell by Rs4 during intra-day trade only once. Overall, the dollar’s rate has appreciated 27% against the rupee, witnessing two of its biggest ever single day jumps in the short span of one-and-a-half months.
The surge in the dollar price against the Pakistani rupee is due to the change in our exchange rate policy and rising value of dollar in international market. All major currencies that were pegged against the dollar depreciated this year. Besides, Pakistan has moved away from a managed exchange rate regime to a free float policy, allowing market forces of demand and supply to determine the dollar price. A demand and supply gap has caused the exchange rate movement where dollar appreciated, according to the central bank.
Market analysts say the dollar may go further up in case of a further delay in availing a loan from the International Monetary Fund to increase our dollar reserves. Prior to the recent increases, some analysts predicted it would cross Rs140 level but a few even said it might touch Rs150 by June 2019.