Karachi, July 21, 2025 – The Pakistani rupee saw a mild depreciation against the US dollar in the interbank foreign exchange market on Monday.
At the close of trading, the rupee lost 8 paisas to settle at PKR 284.95 per dollar, compared to last Friday’s closing rate of PKR 284.87.
Market analysts noted that the slight decline in the rupee’s value was mainly driven by increased demand for dollars from importers and corporates as the new trading week began. Despite this marginal dip, the overall market sentiment remained largely positive, buoyed by stable inflows and a current account surplus.
Currency experts highlighted that the availability of foreign exchange liquidity played a crucial role in keeping the interbank market relatively stable. These inflows were further supported by a modest increase in the State Bank of Pakistan’s (SBP) foreign reserves. As per the latest data released by the SBP, total foreign exchange reserves declined slightly to $19.957 billion as of July 11, 2025, down $72 million from $20.029 billion a week earlier. However, the SBP’s own reserves rose by $24 million to reach $14.526 billion, sending a reassuring signal to the market and easing pressure on the rupee.
Another key driver of interbank stability has been the significant inflow of remittances from overseas Pakistanis. During fiscal year 2024–25, remittances climbed to a robust $38.3 billion, reflecting a 26.6% increase from the previous year. These funds have played a pivotal role in supporting the rupee and maintaining equilibrium in the interbank system.
Further reinforcing the positive outlook, the Pakistan Bureau of Statistics (PBS) reported a 9.47% drop in the trade deficit for June 2025. This improvement in the trade balance indicates a healthier import-export ratio, which could alleviate pressure on the rupee and contribute to medium-term exchange rate stability.
Despite today’s marginal decline, financial experts believe that the rupee remains in a relatively steady position. They urge continued policy discipline, careful external debt servicing, and efforts to attract sustainable inflows to ensure the long-term strength of the interbank market and preserve confidence in the national currency.