ISLAMABAD: The Pakistani rupee weakened3.25 percent in trading against the dollar on Wednesday in whatanalysts speculated could be a central bank-led devaluation toshore up the economy.
Finance Minister Ishaq Dar said in a statement hefelt "deep concern and indignation" at what he called anartificial weakening of the currency.
He did not say who hethought might be responsible.
The rupee fell to 108.00 against the dollar by Wednesdayafternoon, its weakest level in years, after closing at 104.896on Tuesday.
The steep drop after a long period of stability promptedspeculation that the State Bank of Pakistan - which is thebiggest player in the market where it operates a de factomanaged float - had allowed a devaluation to occur.
"We believe the devaluation is in response to ongoingexternal challenges that have seen FX reserves decline by about$4 billion from their peak of $24.5 billion last October," ananalyst´s note from Citibank said on Wednesday.
A spokesman for the State Bank, Abid Qamar, did not reply toqueries on Wednesday.
Pakistani exporters have long complained that the rupee isovervalued, hurting their competitiveness.
Finance Minister Dar, however, "expressed deep concern,indignation and disappointment at the fact that the current
political situation is being exploited by certain individuals,banks and entities".
The statement added that "the responsible persons andentities in this matter will be identified and appropriateaction will be taken against them in the national interest".