KARACHI - The Pakistani rupee hit a historic low on Wednesday as the rupee-dollar exchange rate moved closer to Rs 65 due to higher demand for the US currency in both inter-bank and the open markets. At the same time, the dollar remained charged up versus rupee in the inter-bank dealings. The American currency commenced new day's trading at Rs.64.75 and continued to post gains besides changing hands at Rs 64.80 at the close of the markets on Wednesday. Demand continued to be the pivotal factor that moved the dollar up against rupee in the dealings on Wednesday. The US currency commenced new day's trading at Rs.64.60, recovered grounds and was changing hands at Rs.64.80 at the close of markets on Wednesday. Thus, rupee incurred a loss of 20 paisas versus dollar in the kerb dealings. For the last week, the Forex analysts have been projecting that the dollar-rupee parity might cross the barrier of 65 as it had breached an important mark of 64 due to higher demand for dollars in both inter-bank and the open market. During last week, the rupee-dollar parity continued its upward trend and closed at Rs 64.07. "It is after a gap of more than six years that rupee had touched such a low against the dollar," a currency dealer said adding that the previous high rate of Rs 64 was witnessed on Sep 29, 2001. The flow of dollar is connected to the demand and supply and by the end of this fiscal on June 31, the US currency will remain strong versus rupee increasing its higher demand because at the end of each financial year, the demand of dollar gains momentum in the inter-bank market. The US currency would obtain more strength in the open market on the back of home remittances which was continued to increase for the last 3 to 4 years that would be positive notion for dollar. On the international desks, the dollar traded near a record low against the Euro on speculation that the Federal Reserve will cut borrowing costs further while the European Central Bank keeps interest rates on hold.