The rupee fell sharply on Monday to hit a record low of 91.28 to the dollar, but recovered most of the losses before close on suspected central bank intervention, dealers said.
The rupee ended at 90.75/80 to the dollar, down from Friday's close of 90.60/68. This is the rupee's weakest ever closing, though it was still higher than Monday's intra-day low.
Dealers said Monday's sharp fall in the rupee was driven by higher dollar demand from importers and soft supplies -- a trend that is likely to continue in near-term.
"There were payments of about $100 million today, and since there were not enough dollar supplies, the rupee fell sharply, "said a dealer at a local bank.
Dealers said the rupee managed to recover some losses before the day ended after suspected dollar selling by the central bank, which improved supplies.
The State Bank of Pakistan did not comment.