With US$6.5 billion of IMF lending stalled and a debt default on the horizon, the decline in the currency indicates Prime Minister Shehbaz Sharif’s resolve in winning approval for the much-needed funds. The central bank this week also raised interest rates to a 24-year high to fight surging prices.
The rupee slid as low as 242.25 to the greenback on Thursday, surpassing the previous all-time trough of 240.375 set in July, according to data compiled by Bloomberg. Owais-ul-Haq, a trader from Arif Habib Ltd’s foreign-exchange desk, said Pakistan’s currency touched 250 a dollar.