Rupee at all-time low in open market

The rupee hit an all-time low of 117.70 against the dollar in the open market on Thursday, as some people sought dollars to invest undeclared money amid the announcement of the amnesty scheme that weighed on the local currency, dealers said.

The move was also aggravated by smuggling of the greenback by those who would brought back it for whiten their black money under the amnesty scheme, they added.

Dealers confirmed that the rupee closed at 117.70 to the dollar after hitting a previous all-time low of 117 on Wednesday. However, the rupee closed at 115.61 against the dollar in the interbank market. The gap between official and open market exchange rates increased to Rs2.01.

However, the spread between both the markets should not exceed Rs1, as per the directives of the central bank. “The demand for the dollars remained high, as people are buying dollars to invest their legal or illegal money in the US currency,” said Malik Bostan, president of the Forex Association of Pakistan. “However, the supply is low to cater to the market demand.”