Dollar hits all-time high against Pakistani rupee

By Aamir Latif

KARACHI, Pakistan (AA) – The Pakistani rupee plunged to an all-time low on Tuesday against the US dollar in the interbank market closing at slightly over Rs299.

The rupee fell by Rs1.88 against the greenback during interbank trading.

In the open market, the dollar traded for Rs306, according to the Exchange Companies Association of Pakistan.

The previous record was Rs298.93 against one dollar in the interbank market on May 11.

The latest depreciation in the local currency is mainly attributed to easing import restrictions that the outgoing government of former Prime Minister Shehbaz Sharif imposed last year to stem the flight of dollars from the country's depleting foreign reserves.

Lifting of restrictions was one of the key demands from the International Monetary Fund against a $3 billion financial assistance to prop up the South Asian country's faltering economy in July.

Pakistan's current foreign reserves stand at around $14 billion following the injection of $4.2 billion by the IMF, Saudi Arabia, and the United Arab Emirates, aside from rolling over of more than $5 billion in loans by longtime ally China over the past three months.