US Dollar touches all-time high in open market

KARACHI: The Pakistani rupee continued to depreciate steeply, as it hit a new all-time low of Rs269 against the US dollar in the open market, ARY News reported on Friday.

According to data shared by the Exchange Companies Association of Pakistan (ECAP), the Pakistani Rupee was changing hands at Rs269 per dollar in the open market, equating to a depreciation of Rs7, or 2.67pc, over yesterday’s rate of Rs262.

Meanwhile, the Euro of European Union (EU) rose by Rs7.50 to hit a high of Rs286.50. Moreover, UK Pound increased by Rs5 to reach Rs326.

On the other hand, UAE Dirham and Saudi Riyal witnessed an increase of Rs1 and Rs0.90 to reach Rs79 and Rs71, respectively.

In a statement, the State Bank of Pakistan (SBP) stated that the rupee in the interbank market closed at Rs262.6 per dollar, down Rs7.17 or 2.73 per cent from yesterday’s close.

The local currency’s value declined Rs24.54 to a record low of Rs255.43 in the interbank yesterday, following the removal of an unofficial cap on the exchange rate.

It is pertinent to mention here that the Exchange Companies Association of Pakistan (ECAP) removed the cap on the US dollar in a bid to end ‘artificial’ demand in the market

In a statement, ECAP secretary Zafar Paracha said that the association was withdrawing the cap on the US dollar in the “nation’s interest” as the limit was causing adverse effects.

The statement noted that there was artificial demand in the market as people would buy the dollar from us and sell it in the grey market.