The buying rate for the dollar fell to Rs313 while the selling rate was set at Rs316.

The open market rate had seen a decrease of Rs5 on Tuesday.

The local unit also showed slight gains in the interbank foreign exchange market as it increased by 12 paisas against the dollar.

The local unit was trading at Rs306.98 at the closing of the interbank foreign exchange market on Wednesday.

The local currency was trading at Rs307.10 at the closing of the interbank market the previous day.

The recovery in the value of the rupee was recorded after reports claimed that the government has geared up for a crackdown against people hoarding and smuggling foreign currencies.

Read: World Bank report explains how Afghan currency gained amid falling inflation rate

The matter also came up in Army Chief General Asim Munir’s meeting with traders in Karachi a day earlier, where businessmen complained that the gap between the dollar’s interbank and open market rate and its spiralling value were creating uncertainty for businesses.