Dollar rises to historic high of Rs 142 in interbank market

KARACHI: In a historic surge, the value of the dollar shot up by Rs8 in the interbank market during trading on Friday morning, ARY News reported.

The rate of dollar rate has now reached Rs 142 in the interbank market, against Rs 134 trading yesterday (Nov 29).

The current account deficit is said to be reason behind the fresh surge. The government is holding talks with the International Monetary Fund, and the IMF has asked Pakistan bring down rupee in terms of the dollar, reported our correspondent.

It appeared that the rupee may continue fall in terms of the dollar, because just within one year (December 27, 2017) when it was available at Rs 110.45 against the dollar, has lost Rs 23 to Rs 135.30.

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Our correspondent said the rate of dollar in the open market would be determined once it starts trading later in the day.

Economic expert, Samiullah Tariq, speaking to ARY News, said the reserves of the State Bank of Pakistan had declined below critical level. He said the currency was facing a huge pressure at the moment.

He was of the view that surge in dollar will impact on prices of all basic commodities, thus ultimately burdening masses on financial front.

On October 9, the dollar had dramatically surged to Rs 133.64 and it was highest ever in the country at that time.

The SBP had explained the move as reflective of current account dynamics and a demand-supply gap in the foreign exchange market.

“Although the current account deficit narrowed in August 2018, a consistent increase in the oil import bill on account of rising international oil prices has exerted pressure in the foreign exchange market,” the central bank said in a statement.

“The SBP is of the view that this adjustment in the exchange rate along with lagged impact of recent hikes in the policy rate and other policy measures to contain imports will correct the imbalances in the external account,” it continued, adding the SBP will continue to closely monitor the situation and stand ready to intervene in case of any unwarranted volatility in the foreign exchange market.