The Pakistani rupee fell sharply against the dollar in interbank trade on Tuesday morning, hitting an all-time low of Rs203.45. Analysts said that oil-related payments and uncertainty about the resumption of the International Monetary Fund's loan facility were the main reasons for the fall of the local currency.
The greenback gained Rs2.85 against the previous day's close of Rs200.40, rising to Rs203.45 around 12:30am, according to the Forex Association of Pakistan, reports The Dawn.
At 12:15 pm, the dollar was trading at Rs204 on the open market.
Saad Bin Naseer, director of the web-based financial data and analytics portal Mettis Global, described this as "another dip" in the rupee's value after it fell against the dollar by more than Rs2 on Monday as a result of "declining foreign exchange reserves and oil-related payments".
Moreover, he said, the rupee was also under pressure in view of the upcoming Financial Action Task Force meeting next week.
"All of these factors combined with the uncertainty surrounding the resumption of the International Monetary Fund programme and China's refinancing of $2.3bn have pushed the rupee to a new low," Naseer told Dawn.
Malik Bostan, who heads the FAP, said that the rupee would remain under pressure till June 30, saying that inflation was expected to rise due to the delay in the resumption of the IMF's $6 billion programme with Pakistan and fuel, gas and electricity price hikes. This, he added, would lead to an increase in the interest rate, as a result of which the rupee would weaken.