Dollar up Rs1.90 against rupee

The dollar appreciated by Rs1.90 to Rs279.80 against the rupee in the interbank market on Monday. The State Bank reported the closing price of dollar at Rs279.80 compared to Rs277.90 in the last session held on July 7, indicating that the impact of a staff-level agreement with the IMF is losing its influence on currency markets helping the greenback appreciate in both interbank and open markets. The exchange rate had grossly changed in favour of the local currency when the market opened after long Eid holidays in the first week of July. It was due to reports about an agreement with the IMF for a $3 billion bailout package. Consequently, the US currency fell to Rs275.44 on July 4 from Rs285.99 on June 27. The open market reported the dollar price at Rs283 on Monday compared to Rs282 a day earlier. However, the currency dealers said the demand was low and the sellers were in higher numbers. The business volume of the open market has dropped significantly, particularly after the State Bank allowed banks to purchase dollars from the interbank market instead of open market. The decision has stabilised the dollar rate in the open market.