The US dollar pushed higher against the Pakistani rupee, reaching a fresh high of Rs170.41 in the interbank market at the start of the trading session.
After gaining 31 paise in the interbank market, the dollar is currently trading at Rs 170.41. Its value in the open market climbed by 50 paise to Rs. 172.30.
The Pakistani rupee, which has been dubbed Asia’s worst-performing currency, appears to have allowed the fast-rising US dollar to advance without being checked, thus devaluing the rest of the local currency. In the local market, the currency is fast losing purchasing value, which is quite harmful to the people.
Relevant Read: Pakistani rupee hits lowest to one-year against dollar
The dollar had previously touched a 13-month high on September 15, 2021, when it closed at a record high of Rs 169.50 after which it continued to fall. The dollar, on the other hand, has been strengthening since May of this year due to a variety of factors, including a large current account deficit and hefty import costs.
The reasons for this, according to Zafar Paracha, general secretary of the Exchange Companies Association, are increased dollar purchases by importers and dollar smuggling into Afghanistan.
The State Bank of Pakistan (SBP) previously stated that due to the predicted current account deficit, the dollar may gain during the current fiscal year.