KARACHI - The rupee hit new record low level against the US dollar by reaching at Rs 74.60 in the open market amid speculations that the rupee would shed more value against the US currency because of negative economic development and political uncertainty. However, in the evening the dollar-rupee parity closed at Rs 73.70 rupees. Due to continued rise in demand, the dollar crossed Rs 74 mark versus the national currency in the forex market. The rupee continued to trade on a record low versus dollar in the interbank market by closing around Rs 74 in official dealings and in open market on Tuesday. In the open market dealings, the US dollar kicked off new day's trading at Rs 71/70, continued accumulate gains and was changing hands at Rs.73/50 at close of markets. In the kerb dealings, the American currency started off new day's trading at Rs 71/50, continued to post gains and was trading at Rs 73/40 at close of markets on Tuesday. The exporters are holding back their export proceeds abroad with the aim to get better exchange rate as the rupee is showing vulnerability against the US dollar and other major currencies, capital market sources told The Nation. Currency dealers said that with devaluation of Pak rupee exchange rate against the US dollar, the exporters are creating "standstill" position for export transactions at least for the next two weeks by not bringing trade related inflows into the country. They want to keep on going forward bookings of their sell-abroad proceeds to earn huge profit margins on each consignment. However, the domestic money market is likely to gain further exchange rate momentum against the US dollar including other foreign currencies as the central bank is expected to raise policy discount rate further by 100 bps after July 20, 2008, said sources. Rising inflationary pressures coupled with growing trade and fiscal deficits, the idea of increasing interest rate is also floating in the market. In the international market, the yen rose against the euro and the pound on speculation widening mortgage industry losses will prompt investors to pare holdings of higher-yielding assets funded with the Japanese currency. Although, the foreign exchange reserves position of the country got improved and as on June, 27, 2008 the foreign reserve had increased to 11.28 billion dollars but in the true technical sense, the current depleting status of exchange rate seems quiet unprecedented,   The manipulators are keeping away both local and foreign investors from the money market to bring financial inflows because they are portraying instable outlook for the markets but chances of getting more profit margins in exchange rate is causing dollars-buying, said currency analyst. The weakening trend of our exchange rate regime is much influenced by the volatile-like situation in the capital market which is being persisted on the back of flight of capital, from the local markets for the last few weeks.