Karachi, April 3, 2025 – The Pakistani rupee continued its downward trajectory against the US dollar on Thursday, depreciating by 40 paisas in the interbank foreign exchange market.
The rupee closed at PKR 280.56 per dollar, compared to its previous value of PKR 280.16 on March 28, 2025. This decline comes amid increasing global financial pressures, primarily triggered by the latest tariff decisions imposed by the United States.
Currency analysts noted that the depreciation of the rupee was influenced by multiple factors, including market reopening after the extended Eid ul Fitr holidays. The delay in currency trading activities created pent-up demand for the US dollar, leading to increased pressure on the rupee. Additionally, the global reaction to the US government’s new tariff policies further exacerbated volatility in emerging markets, including Pakistan.
The Pakistani rupee has remained under pressure due to trade uncertainties, as the United States is one of Pakistan’s key export destinations. Analysts warn that the newly imposed tariffs could negatively impact Pakistan’s trade balance by making its exports less competitive in the international market. This could lead to a decline in foreign exchange inflows, putting additional strain on the rupee.
Despite the immediate weakening, some experts suggest that the rupee’s decline may be temporary. They anticipate a potential market correction as global investors adjust to the new tariff landscape. Furthermore, Pakistan’s economic policymakers are expected to introduce measures to curb excessive volatility in the rupee and maintain stability in the foreign exchange market.
The depreciation of the rupee also raises concerns about inflationary pressures in the economy. A weaker rupee makes imports more expensive, which could drive up the cost of essential commodities, fuel, and raw materials. If the rupee continues to face depreciation in the coming weeks, businesses and consumers may experience higher prices, potentially slowing down economic recovery efforts.
Market watchers emphasize the need for the State Bank of Pakistan (SBP) to take proactive steps to stabilize the rupee. While the SBP has been actively managing the foreign exchange market, sustained external pressures and global trade shifts could require further interventions to prevent excessive fluctuations in the rupee’s value.
Moving forward, the performance of the Pakistani rupee will depend on key macroeconomic indicators, global financial trends, and Pakistan’s ability to maintain a steady flow of foreign exchange reserves. The rupee’s stability remains crucial for overall economic growth and investor confidence in the country’s financial markets.