US dollar climbs to Rs108 in interbank market

KARACHI: The US dollar surged to its 2.5-year-high against the Pakistan Rupee in the interbank market on Wednesday, touching Rs108.

After closing at Rs104.90 on Tuesday, the dollar gained Rs3.12 to hit Rs108 today.

In the curb market NBP exchange quote was Rs105.90/106.40, lower than the interbank rate.

According to sources, foreign investment outflows from the Pakistan Stock Exchange have resulted in the surge. 

The rupee to dollar exchange rate depreciated by 3.1 per cent from Rs104.9 yesterday to Rs108.25 today, said a press release by the State Bank of Pakistan’s External Relations Department.

It added that the SBP is of the view that this “depreciation in the exchange rate will address the emerging imbalance in the external account and strengthen the growth prospects of the country”.

The statement added that all macroeconomic indicators have showed an encouraging picture.

“SBP also believes that the current exchange rate is broadly aligned with the economic fundamentals.”

The statement assures that SBP will “continue to closely monitor the developments in the foreign exchange markets and stands ready to ensure stability in the financial markets”.