The US dollar hit a record high of Rs122 in interbank trading on Monday morning.
The greenback, which was previously standing at Rs 115.63, rose by Rs 5.38, according to foreign exchange dealers.
Increasing imports and a widening current account deficit were cited as the possible reasons for the hike in the value of the foreign currency.
Earlier this year in March, the US dollar had shot up by Rs 4.93 in the interbank market to hit a high of Rs115.50 before coming down to Rs115 at the close of business.
The currency had shot up to its record-high in the interbank had also peaked to Rs116 in the open market.
The value of the Pakistani Rupee had noted a four per cent decrease in the interbank market as a result of the dollar rise.