KARACHI, Oct 17: The rupee weakened 2.78 per cent to a record low of 84.40 to the dollar on Friday after reserves fell by $570 million and on pressure from import payments, dealers said.

The rupee was being quoted closing at 83.50/60 to the dollar, dealers said. It closed at 82.05/10 on Thursday.Dealers said the rupee was trading at 86.50 in the kerb market.

“There was sudden panic after the reserve numbers were released last night,” said a currency dealer.Dealers said there had been wheat, oil, dividend and non-essential import payments. There had also been buying against cross-currency swaps that had matured. The foreign exchange reserves fell $570 million to $7.75 billion in the week that ended on October 11, the State Bank of Pakistan announced on Thursday.

The rupee has lost 27 per cent against the dollar this year. Dealers said the global financial crisis had added to pressure on the currency.

Analysts say Pakistan urgently needs $3 billion to $4 billion. Pakistan is spending about $1 billon a month on imports and debt payments and without help it could default on a $500 million Euro Bond debt obligation maturing in February, analysts say.

President Asif Ali Zardari has been in China seeking economic help and Premier Wen Jiabao on Thursday pledged cooperation in confronting Pakistan’s financial crisis.

The Washington Post said this week Pakistan was seeking up to $3 billion from China. The Financial Times reported that Zardari hoped to secure concessional loans of $500 million to $1.5 billion.—Reuters