KARACHI: The US dollar continued to soar against the Pakistani rupee, reaching a new all-time high in the interbank market on Thursday. The US dollar rose by Rs2.34 in the interbank market to reach Rs164.50. In the open market, the US dollar rose by Rs0.50 to Rs163.50.
On Wednesday, the Pakistani rupee continued to weaken against the US dollar, reaching Rs162.47 in the interbank market.
The rupee has been falling against the dollar following an agreement with the International Monetary Fund on a $6 billion loan with expected strict conditions including a “market-determined” exchange rate.
The rupee’s official exchange rate is supported by the central bank under a de facto managed float system and many analysts consider the currency to be overvalued.
According to data from the State Bank, the central bank’s foreign exchange reserves as of May 3 stood at $8.984 billion, equivalent to less than three months of import payments.