KARACHI, Oct 6: Import payments drove rupee to a record low of 78.65 to the dollar in early trade on Monday.

The rupee was quoted at 78.47/57 to the dollar at 10:08am. The previous low was observed on Sept 22 at 78.55.

“There are many import payments due today and the rupee should weaken further,” said a currency dealer.

Dealers said depleting foreign reserves and weak economic fundamentals are likely to add pressure on the local unit.

Foreign reserves fell $690 million to $8.13 billion in the week that ended on Sept 27 from $8.82 billion the previous week, the central bank said on Saturday.

The State Bank of Pakistan said its own reserves fell to $4.68 billion from $5.41 previously, representing a little over two months of import cover.

Last week, ADB approved a $500 million loan which would be reflected in the coming week’s figures and analysts said they could see a marginal rise as banks remained closed from Oct 1 to 4 for Eid holidays. However, analysts said more needed to be done.—Reuters