WASHINGTON - The US dollar surged to record high against the Pakistan Rupee in the interbank market on Monday, touching Rs121.
The greenback, which was previously being traded at Rs115.63, increased by Rs5.38, depreciating the already suffering rupee in the interbank market, according to foreign exchange dealers.
A widening current account deficit and increasing imports have resulted in the surge, the experts said, adding that the strengthening dollar will cause trouble for Pakistan’s economy.
According to SBP, despite the continued growth in exports — 13.3 percent in July-April Financial Year (FY) 18 — and some uptick in remittances, growing imports pushed the current account deficit to US$ 14.0 billion during the first ten months of FY18, which is 1.5 times the level of deficit realised during the same period last year.
The central bank had said the 'market-driven adjustment' in the exchange rate along with other recent policy measures is expected to contain the imbalances in the external account, thereby containing aggregate demand and also facilitating the prospects for generating non-debt creating inflows.
In March, the US dollar had recorded Rs4.93 surge, reaching Rs115.50 in the interbank market. Earlier, it had also touched Rs116 in the open market.
The value of the Pakistani Rupee had faced a four per cent decrease in the interbank market due to increasing rate of the dollar.