KARACHI: The rupee gained Rs1.7 against the dollar in the inter-bank market on Wednesday. The US currency closed at Rs223.94, the State Bank of Pakistan said in a tweet.

The US currency closed at 225.64 in the inter-bank market on Tuesday, the State Bank of Pakistan said. It has been on a freefall against the rupee since Miftah Ismail announced to step down and PML-N leader Ishaq Dar returned to Pakistan.

But, the falling international oil prices have also contributed to such currency exchange rates.

The government has aimed to bring the value of the dollar below Rs200, adding that the actual value of the US currency despite its strong position in the international market was less than Rs200.

“The real value of the dollar is less than Rs200. I won’t tell you the figure,” he said in an interview with journalist Hamid Mir aired on Geo News. “Hopefully, it will go below Rs200. The Pakistan Bureau of Statistics is independent and it does not manipulate.”

SBP Governor Jameel Ahmad informed the National Assembly Standing Committee on Finance on Tuesday that action would be taken against banks and foreign exchange companies involved in exchange rate volatility upon finalisation of the inquiry.

The panel directed the central bank to take “appropriate action” against all banks and exchange companies that were involved in speculation.

The dollar steadied on Wednesday after a sharp rate rise in New Zealand poured cold water over hopes for a pause or slowdown in the US Federal Reserve’s intentions for aggressive hikes.

The dollar had suffered its heaviest setback in more than two years on Tuesday but was back on the front foot after the Reserve Bank of New Zealand (RBNZ) delivered a fifth consecutive 50 basis point (bp) hike.