The dollar busted the previous record of Rs290 on Thursday after gaining Rs8.78 in the interbank market. The US currency reached an all-time high of Rs299 in the early morning trade.

The depreciation comes amid the ongoing political situation and Moody’s warning about Pakistan’s economic situation.

The US currency was being traded at Rs303 in the open market, it emerged. This is the highest jump this week after the dollar gained Rs5.38 on Wednesday, according to the State Bank of Pakistan.

“We consider that Pakistan will meet its external payments for the remainder of this fiscal year ending in June,” Grace Lim of Moody’s Investor Service was quoted as saying by Bloomberg earlier this week. “However, Pakistan’s financing options beyond June are highly uncertain. Without an IMF program, Pakistan could default given its very weak reserves.”

The rating agency’s analyst in Singapore said that they consider Pakistan will meet its external payments for the remainder of this fiscal year ending in June. However, “beyond June they are highly uncertain”.

“Without an IMF program, Pakistan could default given its very weak reserves,” she said.

Many business experts believe that political stability has a direct impact on the economy. They say it affects the investors’ confidence in the market.

When PTI chief Imran Khan was arrested on May 9, the stock market crumbled.

Pakistan has told the International Monetary Fund it will not implement a fuel subsidy programme as the two sides negotiate a long-delayed $1.1 billion bailout for the country, Bloomberg News reported on Thursday.

Prime Minister Shehbaz Sharif in March proposed charging affluent consumers more for fuel, with the money raised used to subsidise prices for the poor who have been hit hard by inflation.

Pakistan has committed not to implement the cross-subsidy programme, an IMF spokesperson told Bloomberg. The government also will not introduce new tax exemptions and will “durably allow” a market-based exchange rate for the rupee currency, the IMF told Bloomberg.