WASHINGTON – The US dollar surged to record high against the Pakistan Rupeein the interbank market on Monday, touching Rs121.

The greenback, which was previously being traded at Rs115.63, increased byRs5.38, depreciating the already suffering rupee in the interbank market,according to foreign exchange dealers.

A widening current account deficit and increasing imports have resulted inthe surge, the experts said, adding that the strengthening dollar willcause trouble for Pakistan’s economy.

According to SBP, despite the continued growth in exports — 13.3 percent inJuly-April Financial Year (FY) 18 — and some uptick in remittances, growingimports pushed the current account deficit to US$ 14.0 billion during thefirst ten months of FY18, which is 1.5 times the level of deficit realisedduring the same period last year.

The central bank had said the ‘market-driven adjustment’ in the exchangerate along with other recent policy measures is expected to contain theimbalances in the external account, thereby containing aggregate demand andalso facilitating the prospects for generating non-debt creating inflows.

In March, the US dollar had recorded Rs4.93 surge, reaching Rs115.50 in theinterbank 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 theinterbank market due to increasing rate of the dollar.