KARACHI, Aug 20: The rupee weakened on Wednesday as investors turned their focus to Pakistan’s sickly economy amid growing uncertainty the coalition government can rule effectively after President Pervez Musharraf resigned.

The rupee ended trade at 74.80/90, compared to Tuesday’s close of around 74.53/60. The currency has lost over a fifth of its value against the dollar this year.

Investors said the deadlock between the two main coalition parties over the restoration of deposed judges was dashing hopes the government will focus on reviving Pakistan’s economy and not be distracted by politics after Musharraf’s resignation.

“The political situation is not helping the foreign exchange market,” said a trader who declined to be named. “The underlying economy is not great either.” “Unless you get a balance of payments solution, I don’t see anything else but further weakening for the rupee ahead,” he said.—Reuters