Karachi, April 13, 2025 — The Pakistani rupee traded within a narrow band throughout the week and is expected to maintain this range-bound behavior in the sessions ahead.
Analysts attribute this stability to improved market sentiment and steady foreign exchange reserves, especially after the United States decided to pause its latest round of sweeping tariff hikes for 90 days on most countries.
On Monday, the rupee weakened slightly, closing at 280.56 against the US dollar in the interbank market. Concerns surrounding the economic fallout of U.S. tariffs had initially sparked volatility across global financial markets, pulling local equities down and putting pressure on the Pakistani rupee. By Wednesday, the currency dipped to 280.77, but staged a mild recovery by Friday, ending the week at 280.46 per dollar.
Last week’s global trade drama was ignited when the U.S. imposed a 29% tariff on imports from Pakistan. China swiftly retaliated, raising its own tariffs on U.S. goods from 84% to a staggering 125%. These moves followed President Donald Trump’s aggressive decision to increase duties on Chinese imports to 145%, while temporarily suspending new tariffs on other nations.
Despite this tension, dealers and financial analysts remain optimistic about the rupee’s short-term performance. “The Pakistani rupee is expected to stay range-bound in the coming week,” a currency dealer noted. “Stable reserves and improved sentiment are key supporting factors.”
Foreign exchange reserves held by the State Bank of Pakistan rose modestly by $23 million, reaching $10.7 billion during the week ending April 4.
Financial terminal Tresmark also sees no major fluctuation ahead. “We anticipate small corrections — around 5-10 paisa weekly — but nothing dramatic,” it noted in its Saturday report. “The outlook might shift post-June, but for now, the Pakistani rupee remains steady.”
Tresmark further indicated that an interest rate cut could arrive in May, as governments worldwide look for ways to cushion the ongoing global shock. “While the IMF staff-level agreement is completed, the Executive Board has yet to finalize a review. If delayed past the budget, it could complicate matters,” the report warned.
As financial markets reel under U.S.–China trade hostilities, the Pakistani rupee remains one of the few currencies managing to hold its ground.