US dollar rises to all-time high of Rs128 at interbank market

Dollar has increased to record high against Pakistani Rupee on Monday, in what was deemed another devalution of the currency by State Bank of Pakistan (SBP).

The US dollar climbed to all-time high of Rs128.25 in the interbank market, gaining Rs6.75 against the rupee to touch new high in the interbank market, local media reported. This is the fourth such devaluation by the central bank since December.

On Friday, the currency was trading at around Rs125/126 per dollar at the opening hours after closing at Rs121.5 per dollar. The hike comes amid mounting economic pressure and speculation that the country may need International Monetary Fund support. Increasing imports and a widening current account deficit were also cited as the possible reasons.

Earlier this year in March, the US dollar had shot up by Rs4.93 in the interbank market to hit a high of Rs 115.50 before coming down to Rs 115 at the close of business.

As per data compiled by Bloomberg, the nation’s currency is the worst performer in Asia since December before today’s drop. The US dollar has gained by over Rs20 in the interbank market since December 2017.