Dollar continues climb against rupee

Updated Jun 27 2019

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According to some dealers, the greenback's value will hit Rs165 before the closing of the outgoing fiscal year. — AFP/File
According to some dealers, the greenback's value will hit Rs165 before the closing of the outgoing fiscal year. — AFP/File

The value of the dollar on Thursday slightly increased in the open market and the interbank market by Re0.50 and Re0.20 respectively.

The greenback strengthened its value against the rupee to Rs163.50 in the open market, while in the interbank market, it hit Rs164.20 level.

The surprise big devaluation of the local currency took place after declaration by the State Bank of Pakistan governor that the exchange rate would be market-based and that the free float was not suitable for the country’s economy.

Earlier on Wednesday, the local currency 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. The greenback, yesterday, was being traded at Rs163 in the open market ─ showing an increase of at least Rs6.

In his first press conference, the new SBP governor had assured that the central bank would interfere in exchange rate if the market became volatile; exchange rate will be market-based and that the free float does not suit the country’s economy.

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.

The PM House today issued a statement saying that the government was considering a special campaign targeted at ensuring that state departments improve their efficiency in controlling prices.