Dollar down Rs1 in open market after interest rate cut
Soon after the State Bank of Pakistan’s decision to slash the interest rate by 100 basis points, the US dollar lost Rs1 against the rupee and was available for Rs167.50 in the open market, reported 24NewsHD TV channel on Thursday.
It came a day after the dollar set a new record in the open market by reaching the level of Rs168.50 as part of the recent surge in its value.
On the other hand, the dollar remained stable in the inter-bank rate and was traded at the previous day’s level of Rs167.36.
Previously on March 27, the dollar had climbed to Rs169 in the inter-bank rate but later suddenly lost Rs4 in the afternoon after the State Bank of Pakistan (SBP) intervened to check the steep upward curve in its value.
The SBP had pumped around $300 to $400 million into the system to stabilise the exchange rate after the day began with more bad news for the rupee as it became weaker with the dollar reaching the value of Rs169, the highest in the history.
A day earlier on March 26, the dollar had set a new record by reaching the mark of Rs166.50. However, it closed the day at Rs166.13.
However, the rupee had recovered some ground in April and May with the dollar exchange falling below Rs160 at one stage, but this trend proved to be unsustainable.
Since June 5 when the dollar had closed at Rs163.30, the world’s dominant currency is moving in an upward trajectory and has gained Rs4.06 against the rupee in inter-bank rate.
Earlier on Tuesday, the dollar was available for Rs167.65 with an increase of Rs1.07 in inter-bank rate and for Rs168 in the open market after a gain of Rs1.