Pakistan rupee slips to record low on political chaos

August 11th, 2008 - 7:16 pm ICT by IANS  

A file-photo of Pervez Musharraf
Karachi, Aug 11 (DPA) The Pakistan rupee dipped to record low against the US dollar Monday as mounting political uncertainties weighed heavily on the currency, traders said. The rupee crossed over 74 against the dollar in the open market, while in the official inter-market, too, it was at of 73.25.

The country’s National Assembly, or lower house of parliament, convened in the evening, was set to initiate impeachment proceedings against embattled President Pervez Musharraf.

Rising economic woes amid domestic political upheavals and tensions along the border with Afghanistan have severely battered the rupee since January as it depreciated by over 16 per cent against the dollar in six months.

The country’s central bank has also lost over $5 billion in foreign exchange reserves during this period due to flight of capital by foreign investors, slowing exports and high oil import costs.

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