KARACHI, Oct. 5 -- Exporters are increasingly selling dollars in the forward market to hedge against risks tied to Pakistan's managed exchange rate, currency dealers said on Friday.

Despite a mild appreciation of the rupee against the US dollar, uncertainty over the exchange rate has prompted exporters to lock in future rates, fearing volatility once existing controls are eased.

Dealers in the inter-bank market warned that the rupee-dollar parity could shift sharply if exchange rate management relaxes. The looming International Monetary Fund (IMF) review - expected to scrutinise Pakistan's currency control measures - has also added to market anxiety.

According to the Exchange Companies Association of Pakistan, the rupee has shown minor...