Dollar hits all-time-high of Rs240
The US dollar continued to rise for the 14th consecutive session on Wednesday and hit a new historic high of Rs240 against the Pakistani rupee amid a shortage of the greenback in the country.
According to the Forex Association of Pakistan, the local currency was trading at Rs239.75 per dollar at 12:13 pm, which is 0.35% less than the closing rate of Rs238.91 the previous day.
On July 28, the rupee had hit a record low of Rs239.94 per dollar.
The rupee’s downward journey against the US dollar does not seem to be over as the Pakistani currency has depreciated by around 26% this year.
The government has so far been unable to arrange an inflow of dollars to replenish the country’s foreign exchange reserves, which are dwindling every week. Despite receiving a $1.2 billion loan tranche from the International Monetary Fund, other creditors could not be motivated to commit to the fund’s support program for the economy.
Currency dealers in the open market said that the dollar traded at Rs245 on Tuesday.
The open market partly blames the government’s decisions on the shortage of foreign currencies. In addition, it is now necessary for repatriating Pakistanis to declare cash and valuables, which affects the flow of money through travelers.