The dollar has reached Rs161.60 in the inter-bank market after it surged by Rs2.60 at the end of the day, the state bank reported on Wednesday.
Meanwhile, in the open market, the dollar exchange rate was Rs160 after rising Rs1.50.
On March 24, a Rs94.6-million foreign investment was made in the government's T-Bills.
Foreign investors have sold nearly Rs1.50 billion worth of T-bills in March, whereas foreign investment in the T-bills from July 1 to March 24 stands at Rs1.60 billion.
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