US Dollar touches historic high against Pakistani Rupee

US Dollar touches historic high against Pakistani Rupee

KARACHI – Dollar at inter-bank and open market reached to all time high level as economists predicting difficulties facing by the government to payback external debt obligations.

Dollar continued its upward journey on the last session before Eid Holidays, the opening was somewhat mute but as the demand from the corporates especially the oil companies increased, the green back skyrocketed.

According to a leading forex dealer at the local bank, the dollar reached to 123 rupees but no deal was struck. It moved between 122.25 to 122.75 rupee when corporates such as oil marketing companies and refineries hunt for dollars.

The dealer said one of the refineries require nearly 75 million dollars to meet its import payment which pushed the green back during the period. However, to stem the upward movement, State Bank of Pakistan or the central bank intervene the forex market and suddenly dollar witnessed some clipping in its value.

From high mark of 122.75 rupee it fell to around 121.20 rupee, but as the demand from the importers remained glued to the market, the dollar closed around 121.39 rupee.

Dollar since June 8 has gained momentum and rose by almost 5 percent or Rs 5.79 to Rs 121.39. This has increased the burden on the country’s national exchequer as the depreciation cost would be higher and to pay external debts, the government has to arrange extra Rs 520 billion to reduce debt obligations.

The rupee since December has weakened by Rs 15.89 or 15 percent, additional debt obligation amounted to be nearly Rs 1325 billion. In the open market dollar gained almost Rs 1.50 to close around 123.50 rupee.