Karachi, April 30, 2025 – The Pakistani rupee made a modest gain against the US dollar on Wednesday, strengthening by 5 paisas in the interbank market.
The rupee ended the day at PKR 280.97 per dollar, slightly stronger than the previous close of PKR 281.02.
According to currency dealers, this small improvement in the rupee was mainly due to inflows from overseas Pakistanis and exporters. Although there was pressure during the day from import and corporate payments, the steady flow of remittances and export proceeds helped the rupee hold its ground against the dollar.
Despite the positive movement, analysts warn that the rupee is still under pressure from broader economic concerns. Pakistan’s foreign exchange reserves remain low, and regional instability continues to affect market confidence. These challenges make it harder for the rupee to show strong or sustained gains against the dollar.
Last week, the rupee experienced slight fluctuations. It started Monday at PKR 280.86 per dollar and slipped to PKR 281.07 by Thursday. It then edged up to PKR 280.97 on Friday. This shows that the rupee-dollar exchange rate is still sensitive to both global events and local uncertainty.
Fitch Ratings recently predicted that the rupee may weaken further in the coming months, possibly reaching PKR 285 per dollar by mid-2025 and PKR 295 by mid-2026. The agency noted that rising economic activity and higher current account pressures will likely put additional strain on the rupee.
Meanwhile, the State Bank of Pakistan reported that foreign reserves dropped by $367 million during the week ending April 18, bringing the total to $10.205 billion. Most of the decline was due to debt repayments, which continue to weigh on the rupee.
However, there may be short-term support for the rupee. Expected inflows of over a billion dollars from the IMF, along with seasonal remittances and stable exports, could help the rupee stay more stable against the dollar.
Still, experts believe that long-term rupee strength depends on stronger economic reforms, rebuilding reserves, and withstanding global dollar movements. Without these steps, the rupee-dollar battle may remain unpredictable.