Runaway dollar reaches new high, rises past Rs197 in interbank trade

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The US dollar continued its rising streak against the rupee on Tuesday, rising past Rs197 in interbank trading and marking the completion of a week of breaking records, largely on account of the country’s rising imports and depleting foreign reserves.

According to the Forex Association of Pakistan (FAP), the greenback gained Rs1.25 from the previous day’s close of Rs196.50 and climbed to Rs197.75 around 12pm.

Meanwhile, the US currency was being traded at Rs200 in the open market.

The current spell of the dollar’s persistent rise against the rupee began on Tuesday last week, when the international currency hit a record high of Rs188.66. It then soared to Rs190.90 on Wednesday, rose past Rs192 on Thursday, reached Rs193.10 on Friday, climbed over Rs194 on Monday and surged past Rs196 yesterday (Tuesday).

While the FAP data showed that the greenback closed Rs196.50 on Tuesday, a Dawn report cited the State Bank of Pakistan’s closing rate at Rs195.74 — a figure that signified that US currency was closing in on the psychological barrier of Rs200.

Another Dawn report highlighted on Tuesday that while the dollar kept the rupee in its strong clutch during the entire fiscal year FY22, the last two months proved the worst.

Asad Rizvi, former treasury head-chase of Manhattan Bank, told Mettis Global on Tuesday that “even persistent inflow of record remittances is not helping” in containing the dollar’s flight.

“Depleting forex reserves, inflow delay and quieter State Bank of Pakistan are giving jitters to the market. But surging oil prices beyond $110 is disastrous,” the Mettis Global report quoted him as saying.