Following a steep rise last week, the dollar continued to surge against the rupee on Monday, recording an increase of Rs1 in the interbank market.
The greenback was trading at Rs157.20 in the opening hours of the market, surpassing its previous high. Last week, the dollar kept everyone on their toes, rising sharply from Rs147.9 before the market closed for Eid to Rs155.85 on June 14.
The interbank rate is the benchmark rate to determine the value of dollar and sets the direction for open market rates. Since open market or cash market rate usually remains higher than the interbank rate, the open market is likely to follow a similar trend.
The dollar kept setting a new high almost every other day last week, rising by Rs8.5 from Rs149 before the Eid holidays to Rs157.5 in the open market on June 14. This is the highest the dollar has ever been against the rupee.
The dollar has been closely monitored by both traders and end users for it remained volatile through much of the present government’s tenure, starting from August 2018. The change of regime resulted in a change of policy whereby the central bank left the dollars to the forces of demand and supply as opposed to managing its rate artificially, which was the practice in the past. The dollar was trading at Rs124 when the PTI government was sworn in, but rose by more than 25% to its current value since then.