Pakistan devalues rupee again, US dollar hits record high against currency

Pakistan’s central bank devalued the currency for a third time since December amid mounting economic pressure and speculation that the country may need International Monetary Fund support.

The rupee dropped as much as 5.1 percent to 121.5 a dollar in trade on Monday, according to bank foreign-exchange traders who asked not to be identified since they are not authorized to speak to the media. The central bank could not be immediately reached for a comment.

The move comes after Pakistan’s foreign exchange reserves dropped to the lowest in more than three years and the current account deficit widened by 50 percent. The nation’s currency is the worst performer in Asia since December before today’s drop, according to data compiled by Bloomberg.

Pakistan appointed Nasir ul Mulk, a former chief justice, as Pakistan’s caretaker prime minister this month with a mandate of running the government until a new administration is elected in a nationwide poll next month.