Rupee hits fresh record low

KARACHI: The rupee fell to another all-time low on Wednesday, weighed down by escalating political turmoil, dealers said.

The local unit closed at 179.44 to the dollar in the interbank market, 0.12 percent weaker than previous record low of 179.22 on Tuesday.

Dealers expect the domestic currency to remain under pressure in coming days.

“The rupee slide continued for a third consecutive session as political uncertainty amid tabling of no-confidence motion against Prime Minister Imran Khan put pressure on the domestic currency,” said a foreign exchange dealer.

“The no-confidence motion will take place on March 28 and it looks till then all economic decisions will be sidelined. This is giving a negative signal to the investors about the country’s economy,” he added.

The completion of the seventh review of the International Monetary Fund’s loan programme also appears to be pending because of the ongoing political instability in the country. Dealers expect the rupee to weaken further but at a slower pace.

“The market is watching whether the local unit will breach the level of 179 in days to come,” said another dealer.

In the open market also, the rupee hit a fresh record low of 180.70 against the dollar. It had ended at 180.50 in the previous session.