ISLAMABAD, Aug. 31 (Xinhua) -- Pakistani rupee dropped to an all-time low against the U.S. dollar, trading at 305.54 rupees against the greenback on Thursday, the State Bank of Pakistan said.
The closing exchange rate of the Pakistani currency in the interbank market witnessed a decrease of 1.09 rupees or 0.36 percent from Wednesday, the central bank said in a statement.
The fall of the Pakistani currency was observed throughout the current month during which the rupee lost 6.2 percent against the U.S. dollar.
Local trade analysts say that the nosedive of the Pakistani currency was triggered by several factors including the finance ministry's move to meet the International Monetary Fund's requirement that restricts the government from interfering in the market to influence the exchange rate.
Irfan Khalid, an Islamabad-based currency trader, told Xinhua that the local currency hit a new low of 326 rupees in the open market, and the demand for the U.S. dollar is very high as people are looking at it as a "safe investment."
Talking to Xinhua, Amir Khaqan, a real estate agent in Islamabad, said that the sector which was previously booming in the country, and other businesses faced a serious setback as the investors are now buying dollars from the black market at high rates, increasing the demand of the greenback in the market, and putting an extra pressure on the Pakistani currency. ■