The greenback was being traded at Rs238, sources said. The last time the local currency gained some strength was on September 1 when the rupee appreciated by 0.07% against the dollar after the International Monetary Fund released more than $1 billion for Pakistan under the bailout package.

However, the rupee has been depreciating since September 2 amid the political and uncertainty and impending food crisis in the country. Pakistan imported food tomatoes and onions from Iran and Afghanistan after floods led by heavy rains pummeled the crops. The government was expected to wheat import as there were reports that the local production in Sindh might take time.

Currency dealers have urged the government to take action against the grey market (illegal market) which apparently started after the food items were imported.

The rupee depreciated by 0.45% on Monday and closed at Rs237.91, the State Bank of Pakistan reported.

The story will be updated till the market closes.