Analysts say the market gained confidence after interest rate hike a day earlier was in line with investors' expectations.
Forex Association of Pakistan attributes the greenback's rising value to consistent increase in importers' demand.
Rupee's fall is attributed to widening trade deficit, delay in arrival of funds from Saudi Arabia.
Analysts cite "shocking" import bill, SBP's "aggressive borrowing" in T-bill auction and global sell-off as reasons for plunge.
Analysts say anticipation of funds from IMF as well as attractive valuations following MSCI demotion help bring in foreign buyers.
SSP says protesters tried to take the law into their own hands; Abad chairperson says between 20-25 people have been injured.
Analyst says despite a staff-level agreement having been finalised with IMF, not clear if the executive board would follow suit.
"Despite a staff-level agreement with the IMF, the market is giving precedence to the interest rate hike," says an analyst.
Only an intervention by the State Bank of Pakistan can contain the skyrocketing value of the greenback, analyst says.
President of Forex Association of Pakistan warns pressure on the rupee can further rise if the dollar supply doesn't increase.
The benchmark KSE-100 gave away some of the gains in the second half of the session, closing the day with a rise of 790.07 points.
Analyst says traders are nervous which is causing a high level of stress and the market needs a firmer direction.
Approval of loan package by the IMF is expected to stabilise the exchange rate, halt the greenback's upward trajectory.
Persistent increase in the value of the dollar is attributed to the growing current account deficit.
Exchange companies' chairman attributes greenback's latest surge to uncertainty created by govt's talks with the IMF.
Analyst says the market can take a new direction if it closes above 44,000 points.
One analyst calls it "late reaction to the monetary policy", another says "cricket tour cancellations reignited uncertainty".
Dollar closes at Rs168.18 in interbank, down from yesterday’s close of Rs169.12.
The rupee made a slight recovery later in the day, gaining 48 paisa to close at Rs169.12 in interbank.
Value of greenback jumped by 80 paisa since the previous day's closing rate of Rs168.09.