KARACHI: After suffering a massive loss in early trade on Friday morning, the Pakistani Rupee made a sharp recovery against the US dollar in the interbank market, to close at Rs166.5, following the State Bank of Pakistan (SBP) alleged intervention.
The analysts believe that the SBP intervened and injected dollars in the market to stabilise the PKR that was being traded at Rs170 against the US dollar: its lowest since June 2019 in early trade.
However, a source working in the money markets denied that there was an intervention by the central bank and linked the bouncing back of the rupee to the inflow of dollars.
Market analysts, on the other hand, believe that the rupee recovered due to both inflows and intervention.
