Rupee loses 37 paise against dollar.

KARACHI -- The rupee came under renewed pressure and lost 37 paise against the US dollar in the interbank market on Wednesday.

Currency dealers were of the firm opinion that the exchange rate will remain vulnerable unless the foreign exchange reserves increase to a minimum level enough for import of three months.

Since uncapping the exchange rate the local currency never got stability while reaching an all-time low against the US dollar above Rs283 early this year.

The dollar was trading both in interbank and open markets at almost the same rate around Rs283 with a slight difference. The State Bank of Pakistan (SBP) reported the closing price at Rs283.92.

Talking to Dawn Exchange Companies Association of Pakistan (ECAP) Chairman Malik Bostan said our suggestions for increasing dollar inflows were still not considered seriously by the government.

When asked about dollar availability, he said there was no shortage of foreign exchange in the open market which is the reason for temporary stability in the exchange rate.

For more than a week the rupee-dollar parity hovered around 283 reflecting a kind of stability. However, currency experts fear that in case of no inflows from IMF and other countries, the local currency could see sharp depreciation.

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