The US Dollar on Wednesday continued its surge against the rupee as it created a new high for the second straight day, rising to Rs169.6 in the interbank market at the onset of trading session.
The rupee depreciated by 46 paisa against the greenback and was being quoted at 169.40/169.60 while trades were reported at 169.50.
“Due to the recent sustained rise in the dollar’s value, importers have started booking the currency in advance, which has increased its demand in the interbank market,” an expert said.
He warned that the dollar could become even more expensive if the State Bank of Pakistan does not intervene.
On Tuesday, the dollar had hit its previous high of Rs168.94, shattering the investors’ confidence in the local currency and exchange rate stability.
The rupee, which has been termed the worst-performing currency in Asia, seems to have opened the field for the bullish US dollar to move forward unchecked and erode the remaining value of the local currency.