Dollar Surges to Rs 125 in Open Market

The US dollar surged to its all-time high of Rs 125 against the Rupee in the open market on Wednesday after gaining by a further Rs 0.5 from yesterday. Pakistani rupee continued its slide in an apparent sign of vulnerability in the country’s economy. In the interbank market, however, the dollar has weakened by Rs 0.33 and was being traded at Rs 121.40, after hiking to Rs 121.73 earlier, forex dealers said. ALSO READ Dollar Reaches New High of Rs. 122.25 in Interbank Market The rupee drop threatens to squeeze consumers ahead of the general election set for July 25. Some analysts expect that the Rupee will weaken further in the coming days as the central bank isn’t taking measures to bolster up the currency. Pakistan is set to pay the seventh installment of about $190 million to the IMF against its Extended Fund Facility arrangement this month. The next payment is due on July 22, 2018. The country successfully completed a $6.7 billion three-year loan programme with the IMF in September 2016. The declining foreign reserves and a widening current account deficit have triggered speculation about going back to the International Monetary Fund for loans for the second time since 2013 which was a possibility that was vehemently rejected by interim finance minister Dr Shamshad Akhtar earlier this month. In December and in March, the rupee was devalued, each time by about 5 percent, by the State Bank of Pakistan. Since December, the rupee has depreciated by about 14 percent.