The US dollar made a new high against the rupee on Monday, soaring to Rs173 in the interbank market.
According to an update on Mettis Global, a web-based financial data and analytics portal, the rupee was being traded at Rs173 against the dollar at 12:37pm compared to the previous session's close of 171.18.
The report said that strong demand for the greenback as well as rising prices of crude oil in international markets were behind the latest round of erosion in the rupee's value.
The report further said that additional pressure on the rupee was created due to no timeframe determined for the conclusion of the ongoing negotiations between the government and the International Monetary Fund that has led to a delay in the release of the next tranche from the Fund.
Effects of IMF's talks being seen in market: Paracha
Zafar Paracha, the chairman of the Exchange Companies Association of Pakistan, told Dawn.com that the sudden surge in the dollar's value was a "concerning matter" for him.
He said the government had given "clear signals" about the rupee's depreciation against the dollar in its talks with the IMF and the effects of that were now being seen in the market.
Paracha further said that uncertainty in the market would remain and its effects would be felt until the IMF deal was finalised.
He said that the officials who trying to curtail the smuggling of the dollar were being harassed, and that was also a factor in the greenback's surge.
Paracha said the government needed to "immediately consult" all the stakeholders or a "crisis" in the currency market could emerge and affect the entire economic environment.