Photo: File 

KARACHI: The US dollar rose by 70 paisas on Thursday, trading at Rs116.5 in the open market.

According to Forex Association President Malik Bosan, the US dollar rate is rising due to higher demand. 

As a result, the Euro has also increased by 30 paisas, trading at Rs143.3, Bosan informed further. 

The dollar rate has been rising since last week, when on Tuesday it rose to Rs115 in the interbank foreign exchange market at the close of business. 

The 4.51 per cent fall in a single day had unsettled the market and was the highest recorded depreciation in the currency?s value since 2008.

The surge in dollar?s value has been attributed to Pakistan?s reliance on imported goods. 

The country?s trade deficit has stood at almost $20 billion in the past eight months, according to statistics issued by the State Bank of Pakistan (SBP).

Pakistan?s imports amount up to $35 billion dollars while the exports stand at a meagre $16 billion, leaving a huge gap between the payments received and made.

No further rupee devaluation required in foreseeable future: Miftah Ismail

'We have [taken and] halted it at Rs 115, which is where the market will settle in a day or two'

The SBP has attributed the rupee?s depreciation, which it says it is closely monitoring, to market forces. 

Speaking to Geo News on Thursday, Miftah Ismail, the Adviser to the Prime Minister on Finance, Revenue and Economic Affairs, had said that considerable thought and consideration of prevalent conditions were put into the move to bump up the price of the US dollar to Rs115.

"We have [taken and] halted it at Rs 115, which is where the market will settle in a day or two," Ismail had assured.