By Shahid Iqbal
KARACHI, Aug 22: Rupee fell steeply against the US dollar on Friday but recovered before the closing of the market, thanks to the State Bank of Pakistan which pumped millions of dollars to support the local currency.
The rupee fell twice to 77.20 against the dollar during the day which was a record low, but it recovered with the help of inflows and closed at Rs76.50.
Bankers said the State Bank finally entered the market to support the rupee facing frequent devaluation as it lost more than one-fifth of its value since the beginning of this year.
Bankers said the State Bank pumped at least $50 million through two large banks. However, currency dealers said it was the stuck-up dollar reserve which entered the market and the selling pressure slashed US currency.
The State Bank, which never accepts buying or selling of dollars, has been out of the market for more than six months.
It was mainly because of its depleting reserves which fell to half of what it was 10 months back. [Read more]
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