Karachi, April 3, 2025 – The Pakistani rupee weakened sharply against the US dollar on Thursday, reacting to the United States’ decision to impose tariffs on global imports.
The rupee opened the day with a decline of 24 paisas, trading at PKR 280.40 compared to its previous closing rate of PKR 280.16 in the interbank foreign exchange market.
Currency analysts attributed the depreciation of the Pakistani rupee to multiple factors, including the reopening of markets after an extended break due to Eid ul Fitr holidays. This sudden pressure on the rupee was exacerbated by the global market reaction to the new US tariff policies, which triggered uncertainty among traders and investors worldwide.
The United States is a major export destination for Pakistani goods, and analysts warn that the newly imposed tariffs could pose significant challenges for Pakistan’s trade balance. With increased costs on exports to the US, Pakistani industries may struggle to maintain competitiveness, potentially reducing the inflow of foreign exchange earnings and exerting further pressure on the rupee.
Despite the immediate drop in value, some experts believe the weakening of the Pakistani rupee is temporary. They anticipate a market correction as the global financial landscape adjusts to the new tariff regime. Additionally, they expect the rupee to stabilize as demand and supply factors in the foreign exchange market find equilibrium.
In the short term, uncertainty looms over how the Pakistani rupee will respond to evolving global trade conditions. Investors and businesses are closely monitoring the situation, with concerns that prolonged weakness in the rupee could lead to inflationary pressures, raising import costs and affecting domestic economic stability.
Market watchers are urging the State Bank of Pakistan to implement measures that support the rupee and mitigate volatility. While temporary fluctuations are expected, the overall trajectory of the Pakistani rupee remains dependent on macroeconomic factors, global trade policies, and Pakistan’s ability to navigate the shifting international economic landscape.