KARACHI: The rupee free fall continued on Wednesday, as the dollar further gained Rs2.40 to reach Rs234.32 in the interbank foreign exchange market, dealers said.

The local unit fell for the ninth consecutive session since the country received inflows from the International Monetary Fund (IMF) on August 31, 2022.

The rupee recorded a fall of Rs15.72, or 7.2 per cent, during the last nine sessions from Rs218.60 on September 1, 2022 to the current level of Rs234.32 against the greenback.

The dollar is racing towards making a record high against the local currency. The rupee hit the all-time low of Rs239.94 to the dollar on July 28, 2022.

The dealers said the local currency is under immense pressure due to the demand for large import payments and also demand from the corporate sector.

Besides, the political uncertainty and adverse impact of the flood devastation on the economy are also pressurising the rupee.

The rupee made some recovery after the IMF Executive Board approved resumption of the loan programme for Pakistan on August 29, 2022.

However, these gains in the rupee value were offset by the removal of a sanction on the import of luxury and non-essential goods.

The experts said the IMF inflows would help further inflows under bilateral and multilateral sources. However, the flood devastation has changed the economic environment.

The torrential rains and flash floods have inflicted a loss of over $10 billion to Pakistan’s economy. The devastation will prompt the country to make imports in the coming days, especially for agriculture products.