KARACHI, Pakistan, Jan 25 (Reuters) - The Pakistani rupee fell by 1.2% against the U.S. dollar on Wednesday after foreign exchange companies removed an upper cap on the currency, saying it was creating “artificial” distortions in the market.
The rupee was bid at 240.60 to the dollar and offered at 243 in early trade, the Exchange Companies Association of Pakistan said in a statement, compared with a range of 237.75/240 at the close on Tuesday.
The association said late on Tuesday it was removing the price cap to reduce volatility in the currency, as the South Asian country struggles to escape a deepening economic crisis. (Writing by Asif Shahzad; Editing by Kim Coghill)
Our Standards: The Thomson Reuters Trust Principles.