The rupee strengthened in the open market by gaining Rs3.50 against the dollar on Monday, the first business day of the week.
The local unit was available at Rs300.5 in the open market. The greenback declined by Rs24 during the last week after the authorities announced to take action against dollar hoarders and smugglers.
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.