Karachi, April 29, 2025 – The Pakistan rupee registered a slight improvement against the US dollar on Tuesday, appreciating by 5 paisas in the interbank foreign exchange market.
The rupee closed the day at PKR 281.02 per dollar, compared to the previous session’s closing of PKR 281.07.
Currency dealers attributed the rupee’s modest gain to foreign inflows, particularly from overseas workers and exporters. Although the local currency faced intraday pressure due to elevated import and corporate payments, improved remittance activity and export receipts helped support the rupee against the dollar.
Market analysts noted that despite this marginal recovery, the rupee continues to struggle with broader macroeconomic challenges. Declining foreign exchange reserves and persistent geopolitical instability have kept the rupee under pressure, limiting its upward movement against the dollar.
Throughout the previous week, the rupee exhibited mild volatility. Starting at 280.86 per dollar on Monday, it depreciated steadily to 281.07 by Thursday before edging up to 280.97 on Friday. These fluctuations reflect the market’s sensitivity to global developments and domestic fiscal uncertainty, which are expected to intensify in the coming weeks.
A recent Fitch Ratings projection forecasts the rupee to weaken gradually, reaching 285 per dollar by mid-2025 and potentially falling further to 295 by mid-2026. The agency cites increasing economic activity and associated current account pressures as key reasons for the anticipated rupee depreciation.
Meanwhile, the State Bank of Pakistan reported a $367 million drop in foreign reserves for the week ending April 18, bringing total reserves down to $10.205 billion. The decline stems largely from scheduled external debt repayments, which continue to weigh heavily on the rupee’s stability.
Nevertheless, short-term relief may arrive in the form of inflows from the International Monetary Fund (IMF), expected to exceed a billion dollars. Additionally, seasonal remittances and steady export earnings could offer temporary support to the rupee-dollar exchange rate.
While these factors provide some breathing space, analysts caution that sustained rupee stability hinges on broader economic reforms, reserve rebuilding, and resilience to global dollar trends. Volatility may persist, but if managed wisely, it could guide Pakistan toward a more balanced external position.