KARACHI: Following intervention from the State Bank of Pakistan (SBP), the exchange rate gained stability on Wednesday.

The rupee has seen 4.7 per cent devaluation in the last four working days.

The dollar was traded as high as Rs111 in the interbank market. But it remained mostly around Rs110.25-50, said currency dealers.

However, the SBP reported the bid price as Rs110.41 and offer price as Rs110.60, reflecting a level that was higher than the market rate.

Currency dealers said the SBP’s intervention was visible after three days of volatile fluctuations.

“Two large banks were selling dollars in the interbank market, which settled the greenback at less than Rs110.50. Banks got intimation during trading that the SBP was there to put a check on the dollar rate and that it should not cross Rs110.50,” said one currency dealer.

He said importers made a rush for buying, but it was not a panic-like situation because the dollar was available at the rate not different from the previous day’s value.

“Markets are volatile, but there is order to this chaos. You will see the rupee hasn’t traded much above Rs110.50 in the interbank market yet. Pressure from importers is relentless. However, the fresh inflow of $2.5 billion will keep the situation under control,” said Eman Khan of Tresmark, a financial terminal for live rates.

Currency dealers in the open market said that stability is temporary and the market can see further volatility.

The open market reacted accordingly and the dollar was traded at Rs110-111 during the day.

Published in Dawn, December 14th, 2017

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

The price of chocolate

The price of chocolate

Little attention is paid to any long-term strategy which might prevent vulnerable children from working in homes where they are in danger.

Editorial

Cholistan project
Updated 18 Feb, 2025

Cholistan project

GPI goals align with Pakistan's broader economic aims but the manner in which the initiative was launched raises questions.
Right to know
18 Feb, 2025

Right to know

IT is an unfortunate paradox that while on paper Pakistan has some of the most impressive right to information laws,...
Dam dispute
18 Feb, 2025

Dam dispute

THE situation in Chilas needs attention and a fair-minded approach so that it can be resolved amicably. Diamer ...
Climate funding gap
Updated 17 Feb, 2025

Climate funding gap

Pakistan must boost its institutional capacity to develop bankable climate projects.
UN monitoring report
Updated 17 Feb, 2025

UN monitoring report

Pakistan must press Kabul diplomatically over its tolerance of TTP terrorism.
Tax policy reform
17 Feb, 2025

Tax policy reform

THE cabinet’s decision to create a Tax Policy Office at the finance ministry has raised hopes that tax policy is...