KARACHI: The US dollar steadily gains up to to Rs121.5 in the interbank market after it closed at Rs119.84 on Monday.
The greenback had reached a record-high of Rs121 on June 11 — the State Bank of Pakistan (SBP) had reasoned the movement to a gap between foreign exchange demand and supply in the interbank market.
In the past 6 months, dollar has reportedly has increased by over Rs15.
According to SBP, despite the continued growth in exports — 13.3% in July-April FY18 — and some uptick in remittances, growing imports pushed the current account deficit to US$ 14.0 billion during the first ten months of FY18, which is 1.5 times the level of deficit realized during the same period last year.
The central bank had said the ‘market-driven adjustment’ in the exchange rate along with other recent policy measures is expected to contain the imbalances in the external account, thereby containing aggregate demand and also facilitating the prospects for generating non-debt creating inflows.
In March, the US dollar had surged by Rs4.93 in the inter-bank market to hit a high of Rs115.5 before coming down to Rs115 at the close of business.
Since December, the rupee however, has fallen by about 14%.