KARACHI, Aug 25: The rupee marked a record closing low on Monday on investors’ fears about persistent political tension and a weak economic outlook would drag on the currency in coming weeks.

Two traders said the rupee closed at 76.60/70 and 76.65 against the dollar. The rupee’s previous record-low closing of 76.60/65 was struck on Aug 16, according to Reuters records.

It hit an all-time intra-day low of 77.15 on Friday.

The rupee has lost 24 per cent against the dollar this year, and pressure has mounted on the central bank to intervene to stop its dive.

But analysts said the cash-poor central bank is in a tight spot because it cannot afford to buy the rupee, and that key support for the currency will only come from an accumulation of foreign reserves, which to happen quickly would require foreign financial aid.

“We need to have foreign reserves and it is not the job of the central bank to go around borrowing money,” said Asif Ali Qureshi, an analyst at Invisor Securities.

Pakistan is in talks with Saudi Arabia to defer an estimated $5.9 billion worth of oil payments, and seeks over $1 billion in loans from the World Bank and the Asian Development Bank.

After six years of healthy growth under former president Pervez Musharraf, who quit on Monday last to avoid being impeached by the coalition government, Pakistan’s economy began hitting tough times last year.

Inflation is soaring, high oil prices have depleted reserves, and trade and fiscal deficits are widening.—Reuters