The rupee crashes to a new low.

 KARACHI: The rupee fell to a new low against the dollar on Monday after former Prime Minister Imran Khan announced the date of a march to Islamabad to demand early elections, escalating a political crisis at a time when the government is attempting to restart an IMF loan programme to help the country's battered economy.

The rupee fell to 200.93 against the dollar in the interbank market, a new low for the 10th straight day. During the session, it fell by 0.39 percent. Since the coalition administration took office in April, the local unit has devalued by 18 rupees.

In the open market, the pound was trading at 201.80 against the greenback. It had previously been sold at 201. According to traders, the rupee has already been under significant pressure due to uncertainties over the IMF program's resuscitation and the government's plans to eliminate fuel and energy subsidies.

Khan's invitation for a march to Islamabad, Pakistan's capital, on May 25 (Wednesday) has reignited concerns about the country's political future. "Investors are highly concerned about Pakistan's economic and political prospects, which is affecting rupee sentiment," said a foreign exchange broker.

Miftah Ismail, the Finance Minister, told Bloomberg that he hopes to finalise an agreement with the IMF in the next two days to obtain the next loan tranche. He stated that he will try to persuade the IMF to provide finance without removing gasoline price subsidies. Last week, Pakistan and the Fund resumed loan negotiations in Doha.

Due to the continuing reduction in foreign currency reserves, investors were also concerned about the country's capacity to satisfy its external obligations. Pakistan's international bond yields have continued to rise sharply at various maturities.

Due to a rising current account deficit and debt repayments, the country's FX reserves have continued to shrink. In April, the reserves were $16.5 billion, down from $17.4 billion in March. The native currency suffered as a result of dwindling reserves and a lack of funding from the IMF and other bilateral and multilateral creditors.

The burden on the decreasing forex reserves was relieved in April when the current account gap shrank. The deficit shrank dramatically in April, from $1 billion in March to $623 million in April, thanks to strong remittances and lower imports.