16 Aug 2008

Pakistan rupee falls to new low

6:53 am on 16 August 2008

Pakistan's currency has hit a record low against the US dollar on speculation that President Pervez Musharraf might be on the verge of resigning.

The Pakistan rupee fell to 76.9 to the dollar on Friday, the fourth consecutive trading day it has hit an all-time low.

The currency has weakened on fears that the president faces impeachment.

Inflation in Pakistan is at its highest in 30 years, the trade deficit is widening and reserves have fallen. The value of the rupee has dropped by 23% this year.

Mr Musharraf, who was involved in a coup that toppled former Prime Minister Nawaz Sharif in 1999, is being threatened with impeachment by Pakistan's new ruling alliance.