US Dollar touches highest level against Rupee

US Dollar touches highest level against Rupee

KARACHI:  US dollar touched Rs110 in market giving another blow to the rupee within a week. The US dollar saw an increase of Rs3 in the morning, climbing to Rs110 in the interbank market as volatility persisted.

On Friday, the US dollar had increased by Rs4.5 in the interbank market and Rs1.5 in the open market, catching the market by surprise, especially since the State Bank had announced on Thursday that it had received $2.5 billion earned from the recent issuance of euro and sukuk bonds.

Pakistan recently raised $1 billion in a five-year Sukuk and $1.5 billion in ten-year Eurobond transactions.

Normally when supply increases, like it did last week, the market stabilises as the balance of payments increases.

However, analysts said that the current account deficit and related factors were building pressure on the economy which resulted in the deteriorate in the rupee against the dollar.