KARACHI: The US dollar hit an all-time high of Rs142 in the interbank market on Friday.
The greenback gained by Rs8 (a five percent increase) to touch the new high in the interbank market. The dollar stood at Rs 134 when the market closed on Thursday.
The rise in dollar comes owing to the widening current account deficit and International Monetary Fund’s (IMF) suggestion to the government to realign the rupee with market fundamentals to access funds.
Further, the State Bank of Pakistan is set to announce its monetary policy today and the market expects an increase in the interest rate which could be reflecting on the dollar rate. The current policy rate is 8.5%.
The latest devaluation of the rupee has taken the total debt owed by Pakistan to Rs760 billion.
The rupee has depreciated by a massive 36% against the dollar over the past 12 months.