Dollar rises against Pakistani rupee in interbank market

KARACHI: The US dollar on Tuesday retaliated against the Pakistani rupee in the interbank trading as the greenback gained 21 paisa against the local unit.

According to the forex dealers, the greenback is currently trading at Rs175.50 in the interbank market.

The dollar was closed at Rs175.29 on Monday, the State Bank said.

On Monday, the US dollar depreciated Rs.1.43 paisas against the Pakistani rupee in the early interbank trading.

On Sunday, Adviser to Prime Minister on Finance, Shaukat Tarin had held ‘satta mafia‘ involved in the depreciation of the rupee as the greenback being smuggled to Afghanistan. He announced that the government was going to tighten the noose around the mafia.

Read more: PETROL PRICE MAY GO UP IN PAKISTAN AGAIN, SAYS SHAUKAT TARIN

The local currency started recovering from its steep fall against the US dollar on Oct 27, after the government announced Saudi Arabia’s financial support of up to $4.2 billion, raising the central bank’s foreign exchange reserves and boosting the sentiments of the currency market.

A week later, however, the rupee snapped its winning streak and began reversing gains.

It is pertinent to mention here that the Kingdom deposited $3 billion with the central bank and extended $1.2 billion of trade finance to support the country’s balance of payments.