September 26, 2002	Thursday	Rajab 18, 1423

KARACHI, Sept 25: The State Bank had to buy about $40 million from the inter-bank market on Wednesday to keep dollar from falling to export-damaging lows. But despite the SBP support the dollar fell slightly to close at Rs59.14/Rs59.16 — down three paisa from the previous close of Rs59.17/Rs59.19. Bankers said heavy corporate inflows combined with higher selling by exporters made the dollar cheaper.

Senior bankers said the central bank bought about $40 million from the banks to help the dollar keep its head above Rs59.10.

Since the start of the new fiscal year in July the dollar has so far recorded a decline of 1.45 per cent in its value against the rupee. The basic reason for this fall has been a consistent rise in external account inflows particularly home remittances.

The State Bank has been supporting the dollar for the benefit of the exporters by way of mopping up excess inflows from the market.

The fall of the US unit in the inter-bank market also mirrored in kerb dealings. Money changers said the greenback closed at Rs59.10/Rs59.15 for spot buying and selling on Wednesday — down three paisa from the Tuesday close of Rs59.13/Rs59.18.