A dollar is now fetching Rs172

KARACHI: The rupee hit an all-time low against the dollar on Wednesday as investors evaluated political and economic risk from upcoming IMF reviews on the bailout package after US senators seek assessment on Pakistan's role in the Taliban offensive that led to the toppling of the US-backed Afghan government.

The negotiations with the IMF for sixth and seventh reviews of the extended fund facility and the Article IV consultations for borrowing $1 billion will start on October 4. The rupee battered third consecutive day, and the analysts and traders see downward pressure to continue at least in near-term.

The rupee closed at 170.48 to the dollar in the interbank market, a 0.30 percent weaker than Tuesday’s close of 169.97. In the open market, the rupee ended at 172.50 versus the greenback, compared with 171.80 in the previous session.

Stocks also tumbled in a broad sell-off, as Pakistan Stock Exchange's (PSX) benchmark KSE-100 Share Index lost 908.19 points or 2.01 percent to close at 44,366.74 points, while testing a day high of 45,342.25 points and a low of 43,973.91 points. The benchmark index plunged the most since March 2020.