Karachi, March 4, 2026 – The Pakistani Rupee continued its modest appreciation against the US Dollar on Wednesday, despite escalating tensions in the Middle East.
According to the State Bank of Pakistan (SBP), the interbank foreign exchange market saw the rupee gain three paisa, with the US dollar closing at Rs279.42, down from the previous day’s Rs279.45.
Currency analysts attributed the rupee’s resilience to lower import demand, as shipping lines temporarily halted new cargo shipments to Middle East countries amid ongoing conflict. The analysts also noted that importers are assessing the impact of the war, triggered by military operations against Israel and US responses in the region, alongside Iran’s retaliatory strikes on US bases in the Gulf.
Despite surging global energy prices, which usually put pressure on the rupee, analysts observed that foreign remittances and export receipts have helped provide support to the currency. The ongoing holy month of Ramadan and the upcoming Eid ul-Fitr festival have also contributed to increased inflows from overseas Pakistanis sending money to families for celebrations.
Experts cautioned that while the rupee’s appreciation is encouraging, sustained stability will depend on continued foreign currency inflows, export performance, and developments in the Middle East. Market participants are closely monitoring geopolitical tensions and global energy prices, which could influence currency trends in the coming weeks.
The SBP reiterated that the interbank market rates are indicative and reflect overall demand and supply dynamics, serving as a guide for commercial banks and traders across Pakistan.