Rupee bounces back against dollar after State Bank intervention
The US dollar suddenly lost Rs4 in inter-bank rate against the rupee on Friday afternoon after the State Bank of Pakistan (SBP) intervened to check the steep upward curve in its value.
It means the dollar was now available Rs165 after reaching another high of Rs169 earlier in the morning.
The SBP 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.
Earlier on Thursday, the dollar had set a new record by reaching the mark of Rs166.50. However, it closed the day at Rs166.13.
As a result of this trend, the dollar’s inter-bank rate increased to the point of Rs4.90.
Although the dollar-rupee relationship remained stable for the last six months or so, the stormy days for Pakistan’s currency started on March 9 when it lost Rs3.65 against the previous level of Rs154.25.
On Wednesday, the dollar had closed the day at Rs161.60 after reaching the value of Rs162 at one point.
The latest gains made by the dollar also reflects another unfortunate reality: the economy will face turbulent times as it is further shattered by the coronavirus crisis.