KARACHI - The Pakistani rupee plunged to an all-time low Monday against the US dollar, as the dollar-rupee exchange rate crossed the barrier of Rs 74 amid uncertainty over the fate of President Pervez Musharraf, dealers said. The rupee was trading as low as 73.40 against the dollar in the official interbank market, but recovered to close at 73.20 rupees. The rupee closing rate on the open market was 74.20. Bearish trend continued to go on as rupee gave up 0/80 paisas versus dollar in the open market due the speculations that the rupee would shed more value against the US currency because of negative economic developments and political uncertainty. According to a forex dealer, on Monday, the national currency recorded losses versus dollar in the interbank dealings. In the interbank dealings, the American currency commenced new day's trading at Rs.72/70, posted more gains and was trading at Rs.73/25 at close of markets on Monday. Thus, rupee lost 0/55 paisas versus dollar in the dealings. The US dollar commenced new day's trading at Rs.73/40, posted gains and was trading at Rs.74/20 at close of markets. Thus, rupee ended the day on a negative note versus greenback in the kerb dealings. On the international desks, the euro gained against the dollar, snapping a four-day decline, after policy makers said the European Central Bank remains focused on inflation and traders judged last week's 3.6 percent drop excessive. Agencies add: Pakistan's economy has been under tremendous inflationary and deficit pressure and the stock market also has taken a beating. The rupee has been sliding for months, and political woes contributed to its fall Monday, dealers said. The country's ruling coalition announced last week that it would seek to impeach the president. Musharraf's spokesman said he's not quitting, and his allies say he will fight the charges. "Exporters are holding their dollars whereas panicky importers are buying more and more dollars because of uncertain political situation," said Malik Bostan, president of the Forex Association of Pakistan, which represents money dealers. According to experts the inflation in the country was at its highest in more than three decades. While, high oil prices have depleted the government's foreign exchange reserves and widened the country's trade deficit, coupled with higher government spending which has boosted the fiscal deficit. Dealers said that stocks have slipped in recent months on political turmoil and the outlook of an economic meltdown. Due to this the stock market dropped 28 per cent this year, making it the third worst-performing market in Asia after China and Vietnam. Compounding political worry, the coalition government has decided to impeach President Pervez Musharraf.