The value of the US dollar hit a high of Rs115.50 on Tuesday in interbank trading, with currency dealers suspecting the government's commitments to foreign monetary bodies being the cause behind the sudden rise. The value of greenback also increased by Rs5.40 in the open market, DawnNewsTV reported.

The State Bank of Pakistan (SBP) held rising demand for dollars responsible for the rise in the USD, adding that it is closely monitoring the situation, but forex dealers seemed reluctant to accept this line of reasoning.

General Secretary Exchange Companies Association Zafar Paracha told Dawn.com that the USD was being sold and purchase at Rs116 and Rs115 respectively.

He claimed that foreign loans, the government's unannounced commitments to international bodies and corruption are responsible for the lower value of the rupee.

Paracha, speaking about corruption with respect to fluctuation in the dollar-rupee exchange rate, alleged that those with advance knowledge of the changing value were able to earn money off the adjusted rates.

He strongly criticised he drop in the value of the rupee, saying that it would pave the way for inflation, lesser foreign investment in the country and the use of illegal means for transferring money.

He demanded the government withdraw the increase in the dollar rate and asked authorities to take traders into confidence before making such decisions.

Given that Pakistan is set to be placed on the Financial Action Task Force's grey list in June, it is not the right time to devalue the rupee, he said, asserted that all regulations which facilitate illegal trading should be amended.

Criticising the Federal Investigation Agency for its frequent raids on money exchangers, Paracha reminded the authorities that the SBP, not the FIA, is a financial regulator.