KARACHI: Exporters are increasingly selling dollars in the forward market to hedge against risks associated with a managed exchange rate, currency dealers said on Friday.

Despite a mild appreciation of the rupee against the US dollar, uncertainty surrounding the exchange rate continues to prompt exporters to lock in future rates, as they fear potential volatility once current controls are eased.

Dealers in the inter-bank market said the exchange rate could shift if exchange rate management is relaxed. The prospect of International Monetary Fund (IMF) scrutiny over currency controls also adds to market concerns.

The Exchange Companies Association of Pakistan reports daily gains in the rupee’s value against the dollar,........

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