Dollar crosses Rs190 to create new all-time high

Published May 11, 2022
A file photo of a person holding US dollar bills. — AFP/File
A file photo of a person holding US dollar bills. — AFP/File

The US dollar on Wednesday reached an all-time high against the rupee, soaring to Rs190.90 in the interbank market before settling at Rs190.02 at the day's end.

The greenback appreciated by Rs1.36 at the market's close, surpassing Tuesday’s close of Rs188.66. The last time the dollar reached an all-time high was on April 1, when it crossed the Rs189 mark.

In the immediate aftermath of the change in government on April 11, it had gone down but the correction soon ran out of steam and now the greenback is soaring again, reaching a new all-time peak.

The rupee is under pressure due to the higher oil import bill and speculation awaiting the Saudi package, Ahsan Mehanti, director of Arif Habib Group told Mettis Global.

General secretary of the Exchange Companies Association of Pakistan, Zafar Paracha, said delays in talks with the International Monetary Fund was putting pressure on foreign reserves.

"We have to pay $10 billion this year. If the programme is not expanded, the rupee could come under a lot of pressure," he warned, urging economic managers to immediately take steps to control the situation.

A Dawn report on Wednesday said the rising exchange rate had rattled the economy.

The rupee had been losing its value mainly because of an uncontrolled rise in imports and a relatively slower pace of growth in exports. This was reflected in the trade deficit, which reached $39 billion in July-April.

Currency dealers said higher demand for dollars was the key reason for the bullish trend in the currency market. Political foot-dragging by the incumbent government on the reversal of fuel and electricity subsidies — a prerequisite for the resumption of the loan programme by the International Monetary Fund — had further eroded the confidence of stakeholders.

Meanwhile, Malik Bostan, chairman of the Forex Association of Pakistan, had also advised the government to reveal the details of the package Pakistan has received from Saudi Arabia to ease the pressure on the rupee.

During Prime Minister Shehbaz Sharif's visit to Saudi Arabia earlier this month, Saudi Crown Prince Mohammed bin Salman had agreed to discuss extending the term of a $3 billion loan to help Pakistan’s new government tide over the prevailing economic crisis.

But so far, no concrete details have come out from these talks.

Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Delicate balance
Updated 13 Mar, 2026

Delicate balance

PAKISTAN has to maintain a delicate balance where the geopolitics of the US-Israeli aggression against Iran are...
Soaring costs
13 Mar, 2026

Soaring costs

FOR millions of households already grappling with Ramazan inflation, the sharp increase in petrol and diesel prices...
Perilous lines
13 Mar, 2026

Perilous lines

THE law minister’s veiled warning to the media to “exercise caution” and not cross “red lines” while...
Collective security
Updated 12 Mar, 2026

Collective security

Regional states need to sit down and talk. They must also pledge and work towards collective security.
Spectrum leap
12 Mar, 2026

Spectrum leap

THE sale of 480 MHz of fifth-generation telecom spectrum for $507m is a major milestone in Pakistan’s digital...
Toxic fallout
12 Mar, 2026

Toxic fallout

WARS can leave environmental scars that remain long after the fighting is over. The strikes on Iran’s oil...