Karachi, May 30, 2025 — The Pakistani rupee recorded a slight appreciation against the US dollar on Friday, supported by healthy foreign inflows and stable reserves. In the interbank foreign exchange market, the rupee closed at PKR 282.02 against the dollar, improving by 5 paisas from the previous day’s closing rate of PKR 282.07.
Currency analysts attributed the modest gain in the rupee’s value to a combination of seasonal remittance inflows and end-of-month export receipts. With the approach of Hajj and Eid-ul-Adha, overseas Pakistanis have significantly increased their remittances, providing a much-needed cushion for the local currency against the dollar. Exporters, on the other hand, have accelerated the realization of foreign proceeds to meet month-end financial commitments, which has helped ease the demand pressure for the dollar in the local market.
In addition, the State Bank of Pakistan’s (SBP) efforts to maintain a stable level of foreign exchange reserves have further strengthened market sentiment in favor of the rupee. According to market insiders, the reserves are sufficient to cover import requirements for the next few months, which has added to the confidence of traders and investors.
However, experts also warned that the rupee remains vulnerable to volatility, especially as Pakistan moves closer to its annual federal budget announcement scheduled for June 10, 2025. Upcoming import payments and corporate obligations could exert renewed pressure on the rupee, particularly if the demand for the dollar surges in the coming weeks.
While Friday’s movement reflects a positive sentiment in the currency market, analysts emphasized the need for sustained inflows and prudent fiscal policies to maintain stability. The next few weeks will be critical in determining whether the rupee can hold its ground or face renewed depreciation against the dollar amid fiscal and external sector challenges. While the rupee showed strength today, future performance will depend heavily on macroeconomic indicators, fiscal discipline, and global dollar movements.