The rate of the US dollar broke its last highest record on Tuesday as it reached Rs111 in the interbank market.
According to forex dealers, the dollar rate increased by Rs2.75 in the interbank market, crosses its peak of Rs110.50 that occurred in September 25, 2013.
The reason behind the increase is said to be the country’s high import bill, adding that the former finance minister had unnaturally restricted the rate at Rs105.50.
The rate of the US dollar has been increasing since the past week, with the value touching Rs110 on Monday before coming back down.
The US dollar saw an increase of Rs3 Monday morning, climbing to Rs110 in the interbank market as volatility persisted. Normally when supply increases, like it did last week, the market stabilises as the balance of payments increases.
However, analysts said that the current account deficit and related factors were building pressure on the economy which resulted in the deteriorate in the rupee against the dollar.