On Tuesday morning, the US dollar soared to Rs. 197 in the interbank market, setting a new all-time high and surpassing the previous day’s high of Rs. 195.
It is currently trading at Rs. 200 up to Rs. 5 from yesterday’s finish of Rs. 195.15.
The greenback appreciated by Rs. 5 from the previous day’s closing, reaching Rs. 200 in the open market trade around 5 p.m., according to South Asia Index recent tweet.
The dollar has surged to a record high against the rupee for the fourth day in a row, with the foreign currency reaching a high of Rs. 191.15 in the interbank market on Saturday, then flying to Rs. 193.50 on Sunday, and surpassing Rs. 195.15 on Thursday.
According to Alpha Beta Core Chief Executive Officer Khurram Schehzad, the dollar’s value is projected to grow further today, owing to the expected strengthening of the greenback in the worldwide market and an increase in interest rates in the United States.
“Moreover, our macros are weak, and the IMF (International Monetary Fund) isn’t on board,” he continued, referring to the uncertainties around a deal with the international lender and the IMF’s delay in releasing a $1 billion tranche.
Because of these factors, the currency market was down, and the rupee was projected to continue losing strength versus the dollar, according to Schehzad. The country’s hefty import bill has also been blamed for the rupee’s free fall against the dollar.
Meanwhile, Mettis Global, a web-based financial data and analytics platform, has linked the dollar’s rise to the country’s continuous economic difficulties, particularly the country’s dwindling foreign exchange reserves and political unrest.
To read our blog on “World Bank’s GDP forecast, rupee’s recovery against the dollar has slowed,” click here.
