US dollar reaches historic high against rupee amid political uncertainty

KARACHI: The unabated rise in US dollar against rupee on Wednesday continued as the greenback reached historic high in the interbank, ARY NEWS reported.

According to forex dealers, the US dollar increased by Rs3.09 against rupee in the interbank and traded at Rs236.02. In open market, the greenback traded between Rs238 and Rs239.

The forex dealers said that the banks are selling the greenback at Rs237.

Interbank closing #ExchangeRate for todayhttps://t.co/yreXph4Iph pic.twitter.com/yfLNF31hjS

— SBP (@StateBank_Pak) July 27, 2022

On Tuesday, the US dollar reached all-time high against rupee in interbank as Pakistan continues to witness political instability.

According to the State Bank of Pakistan (SBP), the US dollar saw an increase in value by Rs3.05 and closed at Rs232.93.

Interbank closing #ExchangeRate for todayhttps://t.co/eqZbQADarW pic.twitter.com/X4GQD5OyO8

— SBP (@StateBank_Pak) July 26, 2022

Previously, the State Bank of Pakistan (SBP) attributed the 11-rupee change in the exchange rate in just two days to the “market-determined exchange rate system” under which the current account position, news stories, and domestic uncertainty contribute to the daily currency fluctuations.

In an apparent attempt to downplay the depreciation, the SBP said a “better measure” of the rupee’s strength is the real effective exchange rate, which takes into account the currencies in which Pakistan trades in inflation-adjusted terms.