Business

Dollar surges to new high of Rs130 in open market

The US dollar touched a record high of Rs130 in the open market on Friday, gaining a further Rs0.30 as it continued its climb against the Pakistani rupee, currency dealers said.
The latest weakening in the rupee comes after the dollar spiked to Rs129 in the open market earlier this week.
Since December, the rupee has cumulatively shed over 21% of its value after the State Bank of Pakistan reportedly abstained from intervening in response to the pressure exerted by a widening current account deficit.
Pakistan’s current account balance has been widening sharply, while foreign currency reserves have plummeted over the past few years.
The country’s economic fundamentals have deteriorated ahead of the July 25 general election, with most financial analysts expecting the next government will need to seek a post-election bailout from the International Monetary Fund.