| GEO Business|
| Rupee hits new low against dollar|
| Updated at: 1514 PST, Monday, September 22, 2008|
KARACHI: Reeling from the shockwaves of Marriot bomb blast in Islamabad on Saturday, Pakistani rupee continued to lose grounds for the second straight week.
The currency dropped to a new low of 78.55 in early trade before closing at 78.30 against the US dollar. Rupee's previous record low was 78.27 in intraday trade on Saturday -- when it closed at 78.20.
Interbank dealers said the market was also short of dollars because of the central bank's swap operations. SBP has been buying dollars in the ready market with a simultaneous commitment to sell them back in future.
Dealers said the outlook remains bleak for the rupee with inflation at more than 25 percent a widening current account deficit and depleting foreign reserves.