Dollar sheds value by Rs4.20 in interbank market
The value of the dollar on Friday considerably decreased in the open market as well as the interbank market by Rs2.50 and Rs4.20 respectively.
The greenback shed its value against the local currency to fall to Rs161 in the open market, while in the interbank market it hit Rs160.
Earlier on Wednesday, the local currency had shed its value by a whopping Rs7.2 in a single day to hit Rs164 in interbank trade ─ a record low ─ at the close of the day's trading. Similarly, the greenback had been traded at Rs163 in the open market ─ showing an increase of at least Rs6 on the day.
The trend continued on Thursday and the dollar's value slightly increased in both the open market and the interbank market by Re0.50 and Re0.20 respectively.
Meanwhile, Governor of State Bank of Pakistan (SBP) Reza Baqir called on Prime Minister Imran Khan on Wednesday when the value of the US dollar against the rupee touched an all-time high.
According to some dealers, the meeting yielded results today, as they believed the arrest in the value of the greenback is a result of intervention by the top bank.
In his first press conference, the new SBP governor had assured that the central bank would interfere in the exchange rate if the market became volatile, the exchange rate will be market-based and that the free float does not suit the country’s economy.
However, despite the assurance, currency dealers complain that either the SBP avoids intervening or some officials in the bank are hand in glove with those commercial bankers who allegedly create an artificial demand of the greenback.
The exchange rate remained almost unchanged, hovering around Rs157 for more than a week while the market was feeling that the dollar could see depreciation against the rupee in the near future.