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US dollar touches new high of Rs122 in interbank market

US dollar touches new high of Rs122 in interbank market

KARACHI: The US dollar climbed to a new high of Rs122 in the interbank market on Tuesday, as the Pakistani rupee continued its slide in an apparent sign of vulnerability in the country’s economy.

The dollar gained by a further Rs0.61 against the rupee to touch its new high in the interbank market, forex traders said. The dollar has gained by Rs6.38 in the interbank market since June 8. The greenback also reached its record high of Rs124.50 in the open market today, traders said.

The rupee drop shows signs of vulnerability in the country’s nearly $300 billion economy, and threatens to squeeze consumers ahead of the general election set for July 25.

The dwindling foreign reserves and a widening current account deficit have triggered speculation about going back to the International Monetary Fund for loans for the second time since 2013 – a possibility that was vehemently rejected by interim finance minister Dr Shamshad Akhtar earlier this month.

In December and in March, the rupee was devalued, each time by about 5 percent, by the State Bank of Pakistan. Since December, the rupee has depreciated by about 14 percent.