KARACHI – The Pakistani rupee is expected to trade within a narrow range against the U.S. dollar in the coming week, supported by steady remittance inflows and improving investor sentiment linked to anticipated funding from the International Monetary Fund, analysts said.
In the interbank market, the rupee showed marginal movement over the past week, closing at 279.07 per dollar on Monday and slightly firming to 279.01 by Friday, reflecting a stable exchange rate environment.
Currency analysts said earlier concerns about a sharp devaluation — driven by geopolitical tensions and upcoming external debt repayments, including obligations linked to the United Arab Emirates — have eased in recent sessions.
They noted that Pakistan’s exchange rate management has evolved, with authorities increasingly focusing on controlling demand for foreign currency through administrative measures and tighter financial conditions, rather than direct intervention via large-scale dollar sales.
Market sentiment has been further supported by strong remittance inflows, which reached a record $3.83 billion in March, providing a key source of foreign exchange liquidity. In addition, the recent staff-level agreement with the IMF has reinforced confidence in Pakistan’s external financing outlook.
Despite these positive indicators, analysts cautioned that external repayment obligations continue to pose risks, particularly in terms of pressure on foreign exchange reserves.
Data from the State Bank of Pakistan showed that its foreign exchange reserves rose by $19 million to $16.4 billion during the week ending April 3. The country’s total liquid reserves increased by $105 million to $21.895 billion, while commercial bank holdings climbed by $87 million to $5.495 billion.
Analysts said that with stable inflows and policy discipline, the rupee is likely to remain resilient in the near term, barring any major external shocks.