Rupee hits record low against dollar

Karachi: The Pakistani rupee remained under pressure against the US dollar and plunged to a new record low in the interbank market on Friday.

According to the State Bank of Pakistan, the local currency gained a meagre 12 paisas against the greenback as the business started but sooner it ran out of steam and lost 78 paisas and ended the day at Rs301.

The Pakistani rupee fell to an all-time low against the US dollar on Thursday, finishing the day at Rs300.22.

Moreover, analysts urged the government to adopt a "sound strategy" to stop the illegal market as the value of the currency soared further. "The government and all stakeholders need to implement a sound strategy to eliminate the black market," they declared.

They stated that although the dollar is easily available on the open market at a hefty price, it is exceedingly hard to find on the interbank market. It was not a good idea for the State Bank of Pakistan to maintain its interest rate at 23% since people prefer to invest in the foreign exchange market because it offers higher returns.

Forex Association of Pakistan Chairperson Malik Bostan warned against hoarding dollars in the hope that its price will increase further. “Due to the increase in the dollar in the interbank market, common people are also unnecessarily buying dollars in the hope that its price will increase further,” he said.