KARACHI, August 21, 2025 – The interbank foreign exchange market on Thursday witnessed a mild appreciation in the rupee’s value against the US dollar, signaling improved sentiment in the currency market.
According to market data, the rupee gained three paisas to close at PKR 281.92 compared to the previous day’s closing of PKR 281.95 in the interbank trading session. This modest uptick reflects steady improvement in Pakistan’s economic fundamentals and policy-driven efforts to stabilize the local currency.
Currency dealers noted that the rupee’s resilience stems from a mix of positive factors, including higher foreign direct investment inflows and a narrowing current account deficit. Improved foreign exchange reserves and reduced reliance on speculative trading have also supported the rupee in recent sessions.
Experts highlighted that robust export earnings, combined with consistent overseas workers’ remittances, have strengthened interbank liquidity and reduced volatility. The State Bank of Pakistan (SBP) has further reinforced confidence by tightening its oversight of illegal currency operations in the open market, ensuring exchange rate stability.
As of last week, Pakistan’s foreign reserves stood at $19.497 billion, a critical buffer underpinning the rupee’s performance. The SBP’s recent policy decision to relax the lien requirement for exporters under the “Delayed Realization of Export Proceeds” scheme has enhanced business confidence and improved dollar liquidity in the interbank market.
While the rupee’s upward movement is encouraging, analysts caution that sustaining this trend requires balanced import growth and a continued focus on attracting foreign inflows to support long-term stability.