Dollar jumps to Rs162.5 in interbank

US dollar has surged by Rs3.5 to reach Rs162.5 on Wednesday afternoon as most of the country observes lockdown.

The greenback has appreciated by 22 percent over Tuesday rate of Rs159 right the next day as the State Bank of Pakistan announced a 150 bps cut in its interest rate to avoid business disruption due to COVID-19 pandemic.

Security experts have indicated that the rise in dollar rate could be owing to the investors rushing to offload their holdings in treasury market and increasing the demand for dollar.

Currency market has experienced volatility in March. Dollar has climbed by Rs8.25 (5.35) to Rs162.5 in around a fortnight. On Tuesday, dollar traded at Rs158.5 through exchange companies.