The exchange rate market witnessed another fluctuation on Tuesday, this time dollar losing Re1 compared to gain of Rs1.55 on Monday.
The dollar was traded at Rs102 in the inter-bank market till the close; however in the second session for Wednesday settlement it fell further to Rs101.70-80.
The massive fluctuation in the dollar prices was the direct outcome of the State Bank’s intervention in the market. The SBP held meetings with banks on Monday and asked them to send the dollar back to its previous level.
The currency dealers in the inter-bank market said banks kept the greenback under strict control by not meeting the artificial demand. They said dollars were available for genuine importers while the speculators were firmly checked.
Dealers said that Wednesday could see further depreciation of the US currency as banks were ready to pull it back to Rs101.