US Dollar recorded highest value of all time as it reached at record high of Rs125.5 in interbank market.
The US Dollar increased by Rs 6 and reached at Rs127.5 in interbank market on Monday (today). When the market opened, Dollar rate climbed to Rs126 and then declined to Rs125.5. However, later it has seen another spike when it reached Rs127.5. On July 13, dollar closed on Rs 121.54 in the interbank market.
Widening current account deficit and increasing imports were cited as the possible reasons for the devaluation of Pakistani Rupee. State Bank of Pakistan said that it is due to the foreign exchange demand-supply gap in the interbank market.
The devaluation of Pakistani Rupee threatens to squeeze people ahead of the Pakistan Election 2018 on July 25. However, the declining foreign reserves and an increasing current account deficit may enforce Pakistan to going back to IMF or International Monetary Fund for loans.
In March 2018 and December 2017, the Pakistani Rupee was devalued each time by around 5%. According to State Bank of Pakistan, Pakistani Rupee is depreciated by around 14% since December 2017.