Rupee bounces back against dollar

KARACHI: The rupee recovered sharply by Re1 against the dollar at the opening of the interbank foreign exchange market on Monday.

The dollar is being traded at Rs174.73. The exchange ended at Rs175.73, at the historic low level to the dollar on last Friday in the interbank foreign exchange market.

Market analysts said that the latest recovery in rupee was due to the measures taken by the State Bank of Pakistan (SBP) a day earlier.

The SBP on November 14, 2021 decided to increase the average cash reserve requirement (CRR), to be maintained during a period of two weeks by scheduled banks from 5 per cent to 6 per cent and minimum CRR to be maintained each day from 3 per cent to 4 per cent.

CRR is the amount of money that banks are required to keep with the central bank and is applicable on demand liabilities and time liabilities with tenure of less than a year.

Time liabilities with tenure of more than one year will continue to be exempted from maintenance of cash reserves.

The open market rate at the opening remained high. The buying and selling of the dollar recorded at Rs177 and Rs178.75 against previous closing of Rs177 and Rs178.50.