KARACHI – The Pakistani rupee fell to fresh record low against the US dollar on Wednesday. The dollar witnessed strength against the rupee in both interbank and open markets, dealers said.
In the interbank market, the US dollar initiated the day’s trading at Rs 90.12 for buying, gained 12 paisas and closed at Rs 90.24 for buying and Rs 90.29 for selling. The Euro recorded its value high against the rupee as it started the day’s trading at Rs 117.37 for buying, increased 35 paisas and closed at Rs 117.72 for buying and Rs 117.92 for selling.
The British currency gained value against the rupee. It started the day’s trading at Rs 140.42 for buying, rose 91 paisas and closed at Rs 141.33 for buying and Rs 141.53 for selling.
In the open market, the dollar witnessed gain against the rupee. It started the day’s trading at Rs 89.95, increased five paisas and closed at Rs 90 for buying and Rs 90.45 for selling.
The European currency recorded strength against the rupee as it initiated the day’s trading at Rs 116.1, gained 90 paisas and closed at Rs 117 for buying and Rs 119 for selling. The British pound increased its value against local currency. It began the day’s trading at Rs 139.2, moved Rs 1.1 up and closed at Rs 140.3 for buying and Rs 142.5 for selling.
Reuters adds: The rupee fall was because of increased import payments and a deteriorating economic outlook, dealers said.
"In addition to weak external account data, growing political uncertainty will exacerbate pressure on the rupee," said Shamila Chaudhary, analyst at Eurasia Group.
"The break with the IMF, downward trend in US-Pakistan relations, prospects of less US aid, and growing civil-military tensions within Pakistan -- all weaken market confidence."