Pakistani rupee inches up against dollar on July 15

rupee vs dollar

Karachi, July 15, 2025 – The Pakistani rupee made a modest gain against the US dollar on Tuesday, reflecting improved market sentiment and steady foreign exchange inflows.

According to official data from the interbank foreign exchange market, the Pakistani rupee appreciated by five paisas to close at PKR 284.67 against the dollar, compared to the previous day’s closing rate of PKR 284.72.

Currency analysts attributed this slight recovery in the rupee to increased inflows from export proceeds and workers’ remittances. These inflows provided much-needed liquidity, which helped ease pressure on the Pakistani rupee. Despite the improved supply of foreign currency, analysts cautioned that persistent demand for dollars—primarily for import and corporate settlement payments—continues to challenge the rupee’s long-term stability.

One of the major confidence boosters for the market has been the notable growth in Pakistan’s foreign exchange reserves. The State Bank of Pakistan (SBP) reported that the country’s reserves surged past the $20 billion mark, reaching $20.029 billion as of July 4, 2025. This is the first time in over three years—since March 2022—that the reserves have reached this level, supported by a significant weekly rise of $1.938 billion.

The central bank further highlighted that overseas remittances have played a key role in strengthening the rupee. Workers’ remittances hit an all-time high of $38.3 billion during the fiscal year 2024–25, reflecting a robust 26.6% increase compared to the previous year. This steady inflow of foreign currency continues to serve as a stabilizing force for the Pakistani rupee in times of external pressure.

Meanwhile, trade figures also provided encouraging signs. According to the Pakistan Bureau of Statistics (PBS), the country’s trade deficit narrowed by 9.47% in June 2025, offering another supportive factor for the rupee’s resilience.

Despite these positive macroeconomic indicators, experts warn that unless dollar demand is further curtailed or managed efficiently, the Pakistani rupee may still face short-term volatility. Nevertheless, the overall sentiment in the currency market remains cautiously optimistic, as strengthening fundamentals gradually bolster confidence in the rupee’s outlook.