Karachi, June 2, 2025 – The Pakistani rupee posted a modest improvement against the US dollar in the interbank market on Monday, buoyed by seasonal inflows and export receipts.
The rupee appreciated by five paisas, closing at PKR 281.97 per dollar compared to Friday’s closing rate of PKR 282.02 in the interbank foreign exchange market.
Currency analysts noted that the rupee’s slight gain against the dollar came as a result of increased foreign exchange inflows. With Hajj and Eid-ul-Adha approaching, remittances from overseas Pakistanis have surged, injecting additional liquidity into the interbank market and easing demand pressure for the dollar.
Additionally, exporters have been accelerating the conversion of their foreign earnings into rupees to meet end-of-month financial obligations. This timely inflow of dollars has temporarily stabilized demand-supply dynamics in the interbank market, supporting the rupee’s position.
Market confidence was further bolstered by the State Bank of Pakistan’s (SBP) ongoing efforts to manage foreign exchange reserves. According to market participants, the current level of reserves is adequate to cover several months of imports, which has helped reduce speculative demand for the dollar in the interbank trading environment.
Despite Monday’s marginal gain, experts caution that the rupee could face renewed headwinds in the days ahead. The upcoming federal budget, scheduled for June 10, may introduce policy measures that could influence market dynamics. Moreover, impending import bills and corporate settlements could once again elevate demand for the dollar in the interbank market, placing fresh pressure on the rupee.
While the rupee has shown resilience for now, its trajectory in the interbank market remains closely tied to upcoming economic developments, especially any shifts in demand for the dollar. Traders and analysts continue to watch closely as Pakistan navigates a critical fiscal period.