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Dollar continues to extend gains, glides past Rs205

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Dollar continues to extend gains, glides past Rs205

After hitting a new peak on Monday, the US dollar extended its gains against the rupee in the interbank market and rose past the Rs205 mark to reach a new high during the early hours of trading on Tuesday — a trend that is largely attributed to the dollar strengthening in global markets, a dearth of dollar inflows and the central bank’s depleting foreign exchange reserves.

According to the Forex Association of Pakistan (FAP), the greenback appreciated Rs1.70 from the previous day’s close of Rs203.90 and climbed to Rs205.50 around 10:30am. (The FAP’s closing rate shows a slight deviation from that of the State Bank of Pakistan, which posted a closing rate of Rs203.86).

Since the inception of the new government in April, the dollar had risen by Rs21 until Monday (June 13), and if current trends continue, it will likely keep moving upward.

Meanwhile, a Dawn report today said the finance minister had failed to come up with any strategy in the budget to save the local currency. The appreciating dollar has not only made imported goods and services prices costlier but is the strongest force pushing inflation in the economy.