KARACHI, April 15: The State Bank sold more than $15 million in the inter-bank market to ensure that the US dollar does not rise beyond a certain limit on increasing demand. But it did not intervene in the market directly. Instead a big local bank sold the dollars on behalf of the central bank.

No official word was available from the SBP but bankers close to it confirmed that it had sold dollars in the market through one of the top five local banks. Sources close to the bank in question also confirmed selling dollars on behalf of the central bank but they could not quantify the amount.

No senior official of the bank was available to comment on it. Bankers say the SBP had to sell dollars in the market to keep the greenback from rising past the psychological barrier of Rs57.50.

The demand for the dollar rose lately after the state- run Civil Aviation Authority purchased $68 million for prepaying its three foreign loans. The prepayment will be made this week.

Bankers say that dollar selling by the State Bank shows that it is determined to defend the rupee somewhere around Rs57.50. On Thursday the rupee closed at 57.47 to a dollar in the inter-bank market.