KARACHI: The rupee recovered 44 paisas against the dollar in the interbank exchange market on Monday, owing to the recent measure taken by the central bank to increase the average cash reserve requirement.

The exchange rate closed at Rs175.29 against the greenback. The local currency ended at Rs175.73 on Friday.

A day ago, The State Bank of Pakistan (SBP) had 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.

The local currency started recovering from its steep fall against the dollar on October 27, after the government announced Saudi Arabia’s financial support of up to $4.2 billion, raising the central bank’s foreign exchange reserves and boosting the sentiments of the currency market.