KARACHI: Rupee traded at 87.57 to the dollar on Wednesday, inching closer to its record low of 87.59, due to increased import payments and negative sentiment surrounding the country's economic outlook.
"The rupee traded at 87.57 per dollar in the ready market, but went to 87.60 in the TOM (one-day forward) market," said a dealer at a foreign bank.
The rupee ended at 87.57/61 to the dollar, compared with Tuesday's close of 87.42/52.
The rupee hit its record low of 87.59 on Friday but this week there was some support from higher remittances from Pakistanis working overseas.
According to official data, remittances rose 40.45 percent to $1.31 billion in August, compared with $933.06 million in the same period last year.
Though there were some inflows, dealers said negative sentiment about Pakistan's economy was affecting the local unit.
Pakistan faces a new crisis as monsoon rains which have killed 226 people sweep through the southern province of Sindh.
Floods have caused only minor damage to the sugarcane and rice crops, officials said, though weeks of downpours have already destroyed about 13 percent of the crucial cotton crop.
Stalled payments from an International Monetary Fund (IMF) bailout programme are also hurting the rupee.
In the money market, overnight rates ended lower at between 12.25 percent and 12.75 percent, compared with Tuesday's close of 13.40 percent, amid increased liquidity in the interbank market. (Reuters)
