KARACHI: The US dollar on Wednesday maintained it upwards march hitting new peak against the rupee, but the State Bank of Pakistan (SBP) through two commercial banks sold dollars to check the local currency’s further slide in the inter-bank market, said market sources.

The dollar soared to an all-time high at Rs169.70 during the session, but the selling of dollars by commercial banks on behalf of the SBP helped the rupee to gain some weight and the dollar closed at Rs169.12.

Currency dealers in the inter-bank market said the demand for dollars remained high which was the main reason for its price appreciation. “The intervention of the SBP did some work on Wednesday, but it will not in future as the demand for dollars seems to remain high,” said Atif Ahmed, a currency dealer in the inter-bank market.

“How long the SBP will continue to pump dollars which have been borrowed at a very high commercial rates?” he wondered.

Banker said that some banks, which have strong community-based clients and always remain surplus with dollars, were also buying dollars from the inter-bank market.

“These banks receive the highest amount of export proceeds but they are also buying dollars pushing up the demand for the greenbacks,” said the banker.

Published in Dawn, September 16th, 2021