Dollar surges against rupee

The US dollar surged by 94 paise on Friday against the rupee during the first session after Eid’s vocations in the interbank market amid strong demand for the greenback.

However, foreign exchange dealers said that dollar rose by 15 to 20 pc during Ramazan, a normal phenomenon in the holy month.

The State Bank of Pakistan (SBP) reported that the dollar price went up to Rs186.63 on Friday from Rs185.69 on 30 April.

The interbank market opened after a week’s vacation of Eid, but the rupee remained under pressure as market sentiment showed no positive change.

Despite higher remittances and inflows of over $4 billion through the Roshan digital account, the U.S. dollar continued its upward trend against the local currency.

Market experts estimate that a sharp drop in SBP foreign reserves in recent months and continued strong demand for dollars on the part of importers have put the rupee under constant pressure.