According to the market sources a kind of uncertainty prevailed among business circle since the dollar's rate, power and gas prices started going up sharply.
"Doing business is becoming difficult for the businessmen, how these negative developments can create business friendly atmosphere? If traders have products to sell, they don't sell and wait for further rise in the rates because prices are increasing with the passage of time. Is it not hurting business sentiment and growth of investment?" other experts questioned.
They feared that these negative factors will cause an inflationary pressure, the nation, who is already suffering from miseries, how will survive?
The Pakistan State Bank raised its key interest rate by 50 basis points to 10.75 percent on Friday, citing continuing inflationary pressures and a high fiscal and current account deficit.
The central bank raised its key policy rate by 25 basis points to 10.25 percent in January in the face of high fiscal and current account deficits which is continuing inflation pressure.
INTER-BANK MARKET RATES: The rupee was down by 48 paisas in terms of the dollar for buying and selling at Rs 140.78 and Rs 140.80 respectively, they said.
OPEN MARKET RATES: The rupee lost about 80 paisas versus the dollar for buying and selling at Rs 141.30 and Rs 141.80 respectively, they said. The rupee was also down by 60 paisas in terms of the euro for buying and selling at Rs 158.00 and Rs 159.80 respectively, they said.
Malik Bostan, President Forex Association of Pakistan (FAP), has told Business Recorder that US dollar surged by some Re 1 to Rs 142.30 in the open currency market, while it increased by some Re 0.70 to Rs 141.80 in interbank market.
During March, greenback rose by Rs 2.30 in the interbank market as it was being traded at Rs 138.50 as of March 5, 2019, he added.
He said that sudden and massive demand of US dollar emerged on Friday as there were reports that Pak Rupee may further depreciate against dollar on purported IMF demand to make the currency market free-float.
Bostan said that ahead of further likely devaluation of Pak Rupee, public preferred to hold the US currency to get a better rate and there were not many customers for sale of US dollar in open currency market. Demand of greenback was on surge for travel, education and medical purposes.
He said that as per State Bank of Pakistan's directives, the difference in inter-bank market and open currency market is still one percent. Due to Hajj and Umrah buying demand of Saudi Riyal is also on surge that has reduced the export of permissible currencies and import of US dollar, he said.
In the final Asian trade, the dollar was poised on Friday for its strongest gain in five months as investors responded positively to a bounce in US Treasury yields and as some of its rivals were hit by dovish signals from their own central banks.
With many currencies on the defensive, the dollar has weathered a decline in benchmark Treasury yields to a 15-month low. Against a basket of key rival currencies, the US currency was a shade higher at 97.217.
The index was on track for a more than one percent rise in March, its best monthly performance since gaining 2.1 percent in October last year. It has risen 1.5 percent from a near two-month low of 95.74 brushed on March 20.
The dollar held strong even as data overnight showed the US economy slowed more than initially thought in the fourth quarter of last year.
The dollar was trading against the Indian rupee at Rs 69.075, the greenback was at 4.081 in terms of the Malaysian ringgit and the US currency was available at 6.725 versus the Chinese yuan.
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Open Bid Rs.141.30
Open Offer Rs.141.80
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Interbank Closing Rates: Interbank Closing Rates For Dollar on Friday.
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Bid Rate Rs.140.78
Offer Rate Rs.140.80
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RUPEE IN LAHORE: The Pak rupee registered reduction in process of trading against the American dollar in the local currency market on Friday.
According to currency dealers, the short supply phenomenon of the US dollar prevailed throughout the trading session which helped its appreciation for buying and selling at Rs 142.10 and Rs 142.30 against the overnight closing trend of Rs 141.45 and Rs 141.50 respectively.
The national currency, however, showed stability as it recovered its earlier losses versus the pound sterling. The pound's buying and selling rates slid from the Thursday's closing of Rs 184.40 and Rs 185.50 to Rs 183.80 and Rs 185.20 respectively, they added.
RUPEE IN ISLAMABAD AND RAWALPINDI: The dollar gained 10 paisas against the rupee at the open currency markets of Islamabad and Rawalpindi here on Friday.
The dollar opened at Rs141 (buying) and Rs 141.10 (selling) against last rate of Rs140.90 (buying) and Rs 141(selling). It closed at Rs141 (buying) and Rs 141.10 (selling).
The buying and selling rates of one tola of gold was Rs 70,200 (selling) and Rs 70,000 (buying) in the local Sarafa (gold) markets of Rawalpindi and Islamabad.