The greenback also reached its record high of Rs124.50 in the open market today, traders said.
The rupee drop shows signs of vulnerability in the country's nearly $300 billion economy, and threatens to squeeze consumers ahead of the general election set for July 25.
The dwindling foreign reserves and a widening current account deficit have triggered speculation about going back to the International Monetary Fund for loans for the second time since 2013 – a possibility that was vehemently rejected by interim finance minister Dr Shamshad Akhtar earlier this month.
In December and in March, the rupee was devalued, each time by about 5 percent, by the State Bank of Pakistan.
Since December, the rupee has depreciated by about 14 percent.