Dollar comes down to Rs300 after action against market manipulators

KARACHI:  The Pakistan rupee continued gaining lost ground against the US dollar as it started the new business week with a Rs2.25 surge in early interbank trading on Monday by reaching the Rs300.70 level – a trend coinciding with the government crackdown on smugglers and market manipulators.

While in open market the rupee was being quoted at 301 for selling and 298 for buying purposes for customers, down from Friday’s levels.

On Friday, the local currency had closed at Rs302.95 after appreciating by Rs1.99, or 0.66 per cent, against the dollar, which trading higher against most of the currencies around the world in recent weeks.

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At the same time, the dollar exchange rate was recorded a Rs3 in open market and sold for Rs305, meaning the difference with the interbank value stood 1pc by the time the last business week had closed.

The move by the State Bank of Pakistan (SBP) to strengthen controls on Exchange Companies, and reports of the army chief’s intervention and deployment of law-enforcement personnel at currency dealer outlets saw the currency regain ground.

However, the rupee still needs to appreciate more so that the people and the businesses can feel the effects of this positive trend as rising fuel prices as well as power and gas tariffs have been fuelling inflation.