Karachi, February 17, 2025 – The Pakistani rupee registered a marginal decline of 6 paisas against the US dollar at the close of trading in the interbank foreign exchange market on Monday.
The rupee settled at PKR 279.27 per dollar, slipping from its previous closing of PKR 279.21 recorded last Friday.
Currency market analysts attributed the depreciation in the rupee to heightened dollar demand, particularly on the first trading day of the week when importers and corporate entities typically ramp up their dollar purchases for payment obligations. This recurring pattern often exerts pressure on the rupee, leading to minor fluctuations in its value.
Despite the rupee’s slight dip, experts remain cautiously optimistic about its stability in the medium term. They cite steady foreign inflows, including export receipts and remittances, as crucial buffers against larger depreciations. The rupee has consistently demonstrated resilience in the face of external pressures, thanks to these supportive inflows.
The State Bank of Pakistan (SBP) recently reported a decline of $252 million in the nation’s foreign exchange reserves. As of February 7, 2025, reserves stood at $11.166 billion, down from $11.418 billion a week earlier. The central bank attributed this decrease to external debt payments and other financial commitments.
Market experts suggest that while such outflows can create short-term pressure on the rupee, the broader outlook remains stable due to robust remittance growth. Official figures reveal a 32% increase in remittance inflows during the first seven months of FY 2024-25, providing vital support to foreign reserves and lending strength to the rupee.
Additionally, export performance has been another factor underpinning the rupee’s stability. According to the Pakistan Bureau of Statistics (PBS), exports rose by 10% during July-January, reaching $19.55 billion compared to $17.78 billion in the same period last year. This growth has helped narrow the trade deficit and reduce pressure on the rupee.
Looking ahead, currency analysts believe the rupee’s trajectory will depend largely on sustained remittance inflows, steady export growth, and prudent reserve management. While the rupee may face intermittent pressure from import-related dollar demand, the underlying economic indicators suggest a promising outlook for the local currency in the coming weeks.