Dollar shoots to Rs115.50 in interbank market

KARACHI: The US dollar rose by Rs4.93 in the interbank market today to hit a high of Rs115.50 before coming down to Rs115 at the close of business, according to forex dealers. 

The currency, which hit its all-time high in the interbank, peaked to Rs116 in the open market. 

The value of the Pakistani Rupee noted a four percent decrease in the interbank market as a result of the dollar rise. 

Rupee depreciated by ten percent in the past 100 days

The rupee, which was standing on Rs105 about three and a half months ago, spiralled down to Rs115 on Tuesday

Explaining the negative fallouts of the move, economic analyst Mohammad Sohail said prices of fuel and other commodities could rise in the country as a result of the latest increase. 

However, sharing a benefit of the rate hike, Sohail said the country's local industry will get a boost as exports are taking a dent while imports are rising. 

Sohail noted that in the past three to four months, the dollar has risen to Rs115 from Rs105 in the interbank trade. 

Economic analyst Asad Rizvi said the country’s foreign exchange reserves are under pressure from the rising current account deficit, adding that the country is paying $200-$250 million every week to pay off foreign loans and other debts.

He added that the rise in the dollar rate will have a positive impact on the current account deficit.

SBP monitoring interbank market 

In a policy statement, the State Bank of Pakistan (SBP) said it is monitoring the interbank market.

An SBP spokesperson said that Rupee is falling owing to pressure from import payments, adding that the market is adjusting the exchange rate accordingly.