KARACHI: The Pak Rupee massively depreciated by Rs3 in intraday trading after significant outflows of hot money, market sources said.
The sources said that large amount had been taken out by foreign investors from funds invested in domestic debt market.
The State Bank of Pakistan (SBP) a day earlier reduced another 150 basis points to bring the policy rate at 11 percent. The SBP a week ago reduced the policy rate by 75 basis to 12.5 percent from 13.25 percent.
The central bank cumulatively reduced the policy rate by 2.25 percent.
The sources said that the foreign investors were upset on sudden decision of policy rate change by the central bank and resorted to panic selling of treasury bills.
The rupee is being traded at Rs162 to the dollar. The rupee was ended a day earlier at Rs159 in interbank foreign exchange market.