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Dollar closes higher at Rs110.20 after breaking 4-year record of Rs111

Dollar closes higher at Rs110.20 after breaking 4-year record of Rs111

KARACHI: The US currency Tuesday broke the four-year-record and touched Rs111 level in the interbank market in early trading but managed to close at Rs110.20.

According to forex dealers, the dollar rate increased by Rs2.75 in the interbank market, crossing its peak of Rs110.50 that occurred in September 25, 2013. In kerb market, the dollar reached Rs110 for buying and Rs110.30 for selling.

The economic pundits have termed high import bill the main reason behind the currency devaluation. They said that the former finance minister had unnaturally restricted the rate at Rs105.50.

The rate of the US dollar has been increasing since the past week, with the value touching Rs110 on Monday before coming back down. The US dollar saw an increase of Rs3 on Monday morning, climbing to Rs110 in the interbank market as volatility persisted.

On Friday, the US dollar had increased by Rs4.5 in the interbank market and Rs1.5 in the open market.

The increase in the dollar rate could lead to a rise in prices of food items, petrol and services, an economist said, adding that a positive aspect of the increase in the dollar rate is that the country’s exports, which have dipped in the past several years, can increase along with the country’s industrial output.