US dollar soars to Rs119.50 in interbank market

KARACHI (92 News) – The US dollar soared by Rs3.88 in interbank market on Monday and touched the highest level of Rs119.50. According to the forex dealers The central bank said that the movement is based on foreign exchange demand-supply gap in the interbank market. Increasing imports and a widening current account deficit were cited as the possible reasons for the hike in value of the foreign currency. The US currency reached at peak level increasing from 115.63 to 119.50. The bank said this market-driven adjustment in the exchange rate along with other recent policy measures are 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 shot up 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.