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Pakistan's Currency Hits Record Low Against Dollar

A Pakistani money changer holds Pakistani rupee and U.S. dollar bills in Peshawar on May 16.

ISLAMABAD -- Pakistan's currency has hit an all-time record low against the dollar, less than a week after the government reached an agreement with the International Monetary Fund (IMF) for a $6 billion bailout.

The Pakistani rupee slid as much as 3.4 percent on May 16 before partially recovering to 145 against the dollar.

The currency has plunged more than 20 percent over the last year, as the country faced slowing economic growth, declining foreign-exchange reserves, and increasing budget and trade deficits.

The central bank devalued the rupee and raised interest rates in 2018 as it sought to contain the financial blowouts from the country's economic challenges.

The preliminary accord clinched with the IMF must still be approved by the fund's board of directors in Washington.

The long-delayed package, intended to shore up Pakistan's public finances and strengthen its economy, would be Pakistan's 13th bailout since the late 1980s.

With reporting AP and Bloomberg