Karachi, August 5, 2025 – The Pakistani rupee continued its impressive rally against the U.S. dollar for the tenth consecutive trading session on Tuesday, reflecting growing investor confidence and macroeconomic stability.
At the close of interbank foreign exchange, the rupee appreciated by nine paisas, settling at PKR 282.57 against the dollar, compared to the previous day’s closing rate of PKR 282.66. Since July 22, when the exchange rate stood at PKR 284.97, the rupee has strengthened by a cumulative PKR 2.40 against the dollar.
Currency experts attribute this surge to intensified government crackdowns on illegal currency trading and the State Bank of Pakistan’s (SBP) strategic interventions. Despite a $311 million decline in total liquid foreign reserves—now standing at $19.607 billion as of July 25—the rupee has defied expectations. SBP’s reserves dropped by $153 million, while commercial bank reserves fell by $158 million.
Several positive indicators have underpinned this rupee rally. A major trade agreement signed with the United States has signaled stronger bilateral economic ties. Additionally, record-breaking remittances totaling $38.3 billion in FY 2024–25—a 26.6% year-on-year increase—have helped improve dollar liquidity in the local market.
Further reinforcing the rupee’s momentum is a 9.47% decline in the trade deficit for June, according to data from the Pakistan Bureau of Statistics.
As the rupee continues to gain ground against the dollar, market watchers anticipate a stable and optimistic exchange rate outlook in the near future.