US dollar gains in interbank and open markets

Karachi: After fluctuations in the interbank and open markets, an increase in the value of the US dollar was recorded.

Several factors contributed to the strengthening of the dollar on Wednesday, including importers clearing previously halted shipments ahead of the budget in anticipation of possible tariff reductions, a one-day bank holiday that increased demand for foreign exchange, and the government's target to raise GDP growth to 4.2% in the upcoming budget.

In the interbank market, the dollar experienced limited fluctuations during trading hours due to intermittent demand for import-related payments. However, by the end of the trading session, the dollar rose by 19 paisas, closing at Rs283.95.

Similarly, in the open currency market, sustained demand led to a 25-paisa increase in the dollar's value, closing at Rs286.39.

The report stated that in order to meet the government’s target of raising GDP growth from 2.7% to 4.2% in the new fiscal year, industrial production must increase. This would lead to a rise in imports of industrial raw materials, thereby increasing the demand for foreign exchange and putting pressure on the Pakistani rupee.