The rupee continued downward trend against the dollar on the money market on Saturday, dealers said.
The rupee breached the barrier of Rs 127 versus the dollar due to persistent demand for the US currency and now the rupee is marching towards 128 levels, money experts said.
Besides, State Bank of Pakistan (SBP) has increased its main interest rate by 100 basis points to 8.5 percent on Saturday, citing rising inflation and economic worries over the large fiscal and current account deficits.
In the final US trade, the dollar climbed to a two-week peak versus a basket of currencies on Friday, boosted by gains against the euro amid concerns about the Italian budget and a US interest rate outlook that reflects multiple rate hikes until 2020.
The US dollar also rose to a nine-month high against the yen. As the third quarter winds down, the dollar index, a gauge of its value against six major currencies, was on track to post its second consecutive quarterly gain of about 0.7 percent. For the last six months, the greenback has advanced nearly 6 percent.
"The US dollar remains a metaphorical rock in a sea of troubles," said Karl Schamotta, director of global product and market strategy at Cambridge Global Payments in Toronto.
"The growth outlook for other Group of 10 countries and the emerging markets remains uncertain, and increased confidence in the forces compelling the Federal Reserve to hike rates next year is helping to lift the US dollar against its counterparts," he added.

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Open Bid       Rs.126.20
Open Offer     Rs.126.80
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