KARACHI: The US dollar jumped to a near-record high against the rupee on Monday, closing at Rs178.13 in the interbank market, up 0.35 per cent from Friday’s 177.50.

The rupee has been under pressure for the last over one month due to high dollar demand. Bankers said the greenback rose to an all-time high of Rs178.30 in December last year.

“The dollar is gaining gradually against the local currency. We know that the State Bank of Pakistan has been influencing the market, allowing gradual devaluation of the rupee,” said Atif Ahmed, a currency dealer in the inter-bank market.

The dollar gained 35-40 paise on Monday against the rupee in the interbank market. Currency dealers said the dollar could become more expensive if the State Bank of Pakistan (SBP) left it free in the market.

“The dollar has shown great strength against all major currencies as it gained about 5pc against the UK pound and euro during the current calendar year,” said Exchange Companies Association of Pakistan chairman Malik Bostan.

He said there was a fear that the dollar may appreciate further against the local currency. “The open market reflects the interbank exchange rate but the business is still at the lowest level as buyers are not available,” he added.

Published in Dawn, March 8th, 2022