Business | Economy
Pakistan rupee edges to record low
The Pakistani rupee edged to a record low to the dollar during the last few minutes of interbank trade yesterday, weighed down by worsening economic fundamentals and unrelenting demand for dollars to cover imports.
- Reuters
- Published: 23:26 October 7, 2008
Karachi: The Pakistani rupee edged to a record low to the dollar during the last few minutes of interbank trade on Tuesday, weighed down by worsening economic fundamentals and unrelenting demand for dollars to cover imports.
The rupee closed at 78.65/75 to the dollar in interbank market. The previous low was made at 78.65 on Monday. The rupee has lost 21.7 per cent since the beginning of the year.
In the kerb market, the rupee crossed 79 to the dollar for the first time.
With red lights flashing across Pakistan's macroeconomic dashboard, the rupee is expected to remain under pressure following a credit rating downgrade by Standard & Poors Rating Agency.
S&P cut Pakistan's sovereign rating further into junk territory on Monday, saying the country's worsening external liquidity may imperil its ability to meet about $3 billion in upcoming debt obligations.
Pakistan is struggling with inflation at more than 25 per cent, and a widening current account deficit, and heavy government borrowing to cover a budget deficit.
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