The rupee made significant gains in open and interbank markets on Monday, the first trading day of the week.

The local currency closed at Rs301.16 in the interbank market after gaining Rs1.79 against the dollar, against the closing of Rs302.95 in the interbank market on Friday., according to the State Bank of Pakistan.

The fall in the value of the dollar comes at a time when the government was cracking down against illegal money exchangers and hoarders of dollars.

Interim Interior Minister Sarfraz Bugti said on Sunday that prize money would be given to citizens who provided information on smuggling, hoarding and illegal immigrants.

The rupee strengthened in the open market by gaining Rs4 against the dollar on Monday, market dealers said, the first business day of the week.

The greenback was available at Rs300 in the open market. It declined by Rs24 during the last week.

Analyst Hamid Mir said that dollar sellers are in a dire situation as no one in Islamabad is willing to buy the greenback even at Rs280 rate.

“The dollar sellers are asking for Rs270/dollar and people are moving forward with free smiles,” he wrote on X.

Meanwhile, the Pakistan Stock Exchange moved in negative territory as the KSE-100 Index shed 128.14 points, or 0.28% and was trading at 45,885.34 levels during midday trading on Monday.

The KSE-30 Index shed 36.79 points, 0.23% and was trading at 16,208.9 level during intraday trading.

The caretaker government launched a crackdown against the smuggling of dollars, sources said.

They added that the government has identified individuals and companies involved in illegal hoarding of the greenback.

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The institutions tasked to lead the operation have gathered two years of data on exchange companies.

According to Forex Association of Pakistan Chairman Malik Bostan, the rupee was gaining value against the dollar because exchange companies ‘surrendered’ $20 million.

It was later reported that the authorities were planning to scan bank lockers using special devices across the country. However, officials from the State Bank of Pakistan and the Federal Investigation Agency clarified that reports about scanning bank lockers were false.

“The SBP has not initiated any such move, nor is it possible to scan lockers from the outside,” Dawn newspaper quoted the SBP’s chief spokesperson as saying.