Islamabad, Jul 19 (IANS): The Pakistani rupee (PKR) has suffered a significant decline against the US dollar, according to the country's central bank.

The State Bank of Pakistan (SBP) said the greenback traded at 283.04 PKR in the interbank market on Tuesday, Xinhua news agency reported.

The U.S. dollar closed at 279.26 PKR on Monday.

On the second working day of the week, the local currency depreciated by 3.78 PKR, or about 1.34 per cent, against the US dollar, official figures showed.

Over the past few weeks, the PKR went through a strengthening streak after Pakistan's agreement with the International Monetary Fund followed by commercial loans from foreign countries.

However, the political and economic instability is causing uncertainty in the business environment, resulting in a shortage of the greenback in the market.

The local currency is expected to weaken further in the coming days amid the loan repayments which Pakistan has to pay in the near future, according to market analysts.