Karachi, April 4, 2025 – The US dollar continued its downward trend on Friday, settling at PKR 280.47 in the interbank foreign exchange market.
This marks a 9-paisa improvement in the rupee’s value compared to the previous day’s interbank closing rate of PKR 280.56.
According to currency dealers, the strengthening of the rupee is largely attributed to improved economic indicators, a buoyant Pakistan Stock Exchange (PSX), and rising investor confidence. The interbank market reflected this positive sentiment, with modest but consistent demand for the rupee as foreign exchange flows showed signs of stability.
Analysts noted that optimism surrounding upcoming inflows from the International Monetary Fund (IMF) also played a key role. Pakistan is expecting a tranche of $1.3 billion under its current Extended Fund Facility (EFF) program with the IMF. The anticipated disbursement has helped improve market confidence and supported the rupee in the interbank trading sessions.
Earlier in the day, the rupee had posted a sharper gain of 26 paisas against the dollar. However, being the last trading day of the week, there was a noticeable increase in demand for the dollar from importers and corporate sectors. This surge in dollar buying limited the rupee’s upward momentum, trimming the overall recovery.
Market observers suggest that while the rupee is showing resilience, it may remain range-bound in the coming sessions. The recent pick-up in industrial and commercial activity is expected to fuel dollar demand in the interbank market, potentially putting mild pressure on the local currency.
“The interbank market is experiencing a delicate balance between inflows and outflows,” said a senior currency analyst. “While sentiment is positive due to expected IMF funding and a rising stock market, the underlying dollar demand from the industrial sector remains a counterforce.”
Despite the short-term volatility, traders are hopeful that continued fiscal discipline and external support will keep the dollar under control in the interbank market, paving the way for a more stable exchange rate environment in the weeks ahead.