The rupee extended its losses for the second consecutive session, falling by Rs1.63 against the dollar in the interbank market on Tuesday.
At around 12:00pm, the rupee was being quoted at 221.49, a depreciation of Rs1.63 or 0.73% against the greenback, during intra-day trading.
On Monday, the rupee settled at 219.86 after declining by Re0.88 against the greenback.
Meanwhile, the spread between inter-bank and open-market rates soared to what currency dealers said was a historic high with the gap hitting Rs10-12 on Monday. The US dollar finished at 219.86 in the inter-bank market but was trading at the 230-232 level in the open market.
Currency dealers attributed the widening spread to a lack of availability of dollars in the open market following the suspension of duties and taxes on import of vegetables and an increase in smuggling.
The PKR had fallen to a record low of 239.94 on July 28. It had then recovered for 11 consecutive sessions, closing at Rs213.90 in the interbank on Aug 16.
However, the local currency had started falling again from Aug 17, losing Rs8.02 till Aug 29. It gained briefly for three sessions against the greenback before declining again on Friday.
