The dollar fell by Rs2.18 in the interbank market on Thursday, the State Bank of Pakistan reported. The local currency closed at Rs287.20.

The development comes a day after the US currency appreciated in the interbank market by 0.64% or Rs1.84 on Wednesday. But the buying and selling rates of dollars in the open market stood at Rs289 and Rs292 in the open market, according to the Forex Association of Pakistan.

The government has vowed to ensure no abnormal premium emerges between the rate of interbank, open, and informal markets.

“The average premium between the interbank and open market rate will be no more than 1.25% during any consecutive five business day period,” the government stated in the letter of intent which was attached to the country report released by the International Monetary Fund on July 19.

The State Bank of Pakistan’s foreign reserves almost doubled after increasing by more than $4.2 billion. They reached $8.7 billion during the week ending July 14.

More to follow…