Rupee nosedives to 290 vs dollar

The US dollar appreciated to an all-time high against the rupee, rising by 1.8 per cent in the interbank market on Wednesday, apparently after the political situation deteriorated further. The State Bank reported the dollar price at Rs290.22 in the interbank market against the price of Rs284.87 a day before, an increase of Rs5.37, or 1.8pc. This was the highest dollar price in the banking market. The previous highest rate was around Rs288, observed earlier this year. However, the reason for the sudden jump in dollar prices in the banking market was not acceptable to many stakeholders, who accused the banks of again using the deepening political crisis to make money “unlawfully”. Earlier, the banks were held responsible for artificially increasing the dollar rates to earn profits, and the State Bank had announced that it would penalise these banks. The uncertainty on the political front deepened after the arrest of PTI Chairman Imran Khan on Tuesday, leading to nationwide protests.