KARACHI: Forex dealers have said that the value of the US dollar hit anall-time high of Rs127.50 in the interbank market on Monday.
The US dollar rose by Rs6 in the interbank market today, the forex dealerssaid.
As the market opened, the rate of dollar soared to a high of Rs126 and thenwent to Rs125.50 before rising once again and spiking to Rs127.50.
In the open market, the US dollar rose by Rs4 taking the rate to Rs128.20.
At the close of business on Friday, the rate of dollar closed on Rs121.54in interbank foreign exchange market.
On June 14, the rate of dollar closed on Rs121.39. Dollar rose to Rs1during that day and also witnessed a sharp increase to Rs122 at one point.
Further on June 11, the US dollar closed at Rs119.84, after reaching arecord high of Rs121 earlier that day.
Increasing imports and a widening current account deficit were cited as thepossible reasons for the hike in the value of the foreign currency.
Despite the continued growth in exports (13.3 percent in Jul-Apr FY18) andsome uptick in remittances, growing imports have pushed the current accountdeficit to US$ 14.0 billion during the first ten months of FY18, which is1.5 times the level of deficit realised during the same period last year,SBP said.
The bank said this market-driven adjustment in the exchange rate along withother recent policy measures are expected to contain the imbalances in theexternal account, thereby containing aggregate demand and also facilitatingthe prospects for generating non-debt creating inflows.
In March, the US dollar shot up by Rs4.93 in the inter-bank market to hit ahigh of Rs115.5 before coming down to Rs115 at the close of business.
Since December, the rupee has depreciated by about 14 per cent.