The Pakistani rupee depreciated further in the interbank market on Tuesday hitting a new low of 221 in the interbank market against the US dollar.
The foreign currency gained Rs5.80 during the intraday trade.
The rupee was trading in the open market at Rs222 against the dollar today.
Experts are of the view that the dollar maintains its upward trajectory owing to the political uncertainty triggered by the thumping defeat of the ruling PML-N at the hands of PTI in the Punjab by-elections.
As per the data released by the State Bank of Pakistan (SBP) on Monday showed that the local unit lost Rs4.25, or 1.97%, against the US dollar to close at an all-time low of Rs215.20.
It was the highest day-on-day depreciation after March 26, 2020.
On June 22, the rupee had closed at a record low of 211.93 against the greenback and since then the currency has remained volatile.
Analysts believe, however, that the domestic political and economic situation are not the only factors at play.
"The dollar is getting stronger in the global market almost against all the world currencies and the Pakistani Rupee is no exception," said Alpha Beta Core CEO Khurram Shehzad.
Speaking of Pakistan's financial situation, Schezad said that the country's external account issues "are not settled as yet, the IMF (International Monetary Fund) is yet to be on board, and the flows are yet to materialize".
"Global rating agencies have put a negative outlook on the economy, so that is an additional burden that is weighing on the financial markets in the general and foreign exchange market in particular," he added.
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