US dollar rises sharply against Pakistani Rupee in open market

US dollar rises sharply against Pakistani Rupee in open market

ISLAMBAD - US dollar was up by 90 paisa in the open market on Monday, rising sharply over the last two days.

The green back was trading at Rs139.2, a notable rise from the Friday’s rate of 138.3, when it was hovering at its lowest level in two months.

The dollar had kept buyers and sellers on their toes last year because of volatility in its prices and hit its all-time closing high of Rs140.3 in November last year. It fell below that level shortly after but mostly kept trading above Rs139.

However, in the last two weeks the dollar had fallen by nearly Rs1 and reached the level it last maintained on December 4. The dollar’s downward slide came after the central bank received dollars from friendly countries that helped its foreign exchange reserves jump to a five-month high.

However, the country still faces shortage of dollars, which is keeping the rupee under pressure. The dollar’s rise back to its current level coincides with Prime Minister Imran Khan’s meeting with International Monetary Fund chief Christine Lagarde on Sunday.

The dollar in the interbank market also rose by 50 paisa to 138.9. The interbank rates are benchmark rates to gauge the rupee’s real value.

In 2018, the dollar appreciated 27% against the rupee, witnessing two of its biggest ever single day jumps in the short span of one-and-a-half months. It was one of the most volatile years in terms of exchange rate uncertainty.