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Wed 30 Nov 2011 10:51 AM

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Pakistani rupee hits record low at 88.45 versus dollar

Negative view about regional currencies, bleak outlook for country's economy hurts currency

Pakistani rupee hits record low at 88.45 versus dollar
The euro edged up 0.1 percent to $1.3328, hovering above a seven-week low

The Pakistani rupee's slide continued for a third day on Wednesday, with increased import payments, negative sentiment about regional currencies and a bleak outlook for the country's economy driving it to a record low of 88.45 to the dollar.

The rupee was trading at 88.40/50 to the dollar at 11:14 am (0614 GMT), compared with Tuesday's close of 88.25/30.

The previous low was 88.28 on Tuesday.

The euro inched higher on Wednesday as the market gave a guarded reception to details on the euro zone's new lending facility and on proposals to expand funding for the IMF so it could lend to troubled members such as Italy.

Euro zone finance ministers agreed to use the EFSF fund as a sort of bond insurance vehicle that would provide partial protection of 20-30 percent against losses on the principal of new bonds issued by a requesting member.

Dealers said the talk of more money for the International Monetary Fund seemed to be a positive development, but the Asian market was choosing to defer judgement until Europe opened.

The euro edged up 0.1 percent to $1.3328, hovering above a seven-week low near $1.3213 hit late last week, but down from the previous day's high of around $1.3443.

The single currency had slid 7 percent from a peak of $1.4248 hit in late October down to last week's low.