The rupee gained some strength in the money market as the value of the US dollar on Thursday further decreased by Rs1.70 in the interbank market.
The greenback settled down at Rs 148.70 in the interbank market. The decline also dictated the open market, forcing the dollar to shed its value by Re0.50 to Rs149.50.
According to currency dealers, stability started returning to the money market as external payments had been made. Some sources in the market said that the State Bank of Pakistan’s (SBP) off the record warning to commercial banks against unnecessary acquiring of the dollar also played its role in bringing the value of the greenback down.
Primary dealers expressed hope that the factors, in addition to rising inflows of remittances, would further push the greenback to shed its value in the currency market.
Earlier on Wednesday, the value of the dollar established in the interbank market at Rs150.22 — down Rs0.78. It, however, remained stable at Rs150 in the open market.
On Tuesday, the US dollar had reached the Rs151 mark in the interbank market, with the rupee falling by Rs1.40, while in the open market, the rupee had slid to Rs150 against the dollar, down Rs0.50 as compared to the previous day.
On Monday, falling demand coupled with a surge in supply had pushed dollar’s price in the open market to Rs149.50 — down half a rupee from the Rs150 rate in the preceding session. In the interbank market, the greenback had been traded at Rs149.60 as compared to Rs150.90 in the earlier session, posting a decline of Rs1.30.