Karachi, April 7, 2025 – The Pakistani rupee (PKR) experienced a slight dip of 10 paisas against the US Dollar (USD) on Monday, reflecting the broader economic pressures facing Pakistan. The rupee closed at PKR 280.57 against the dollar, down from the previous Friday’s closing of PKR 280.47 in the interbank foreign exchange market.
The fall in the Pakistani rupee’s value is attributed to several key factors, including the significant downturn in the Pakistan Stock Exchange (PSX). At 3:25 PM, the benchmark KSE-100 index recorded a sharp decline of 3.19%. The fall in local stocks followed the US government’s decision to impose tariffs on imports from several countries, which rattled global markets and caused investor sentiment to sour. This negative sentiment spread across local markets, putting additional pressure on the rupee.
Currency market analysts noted that the Pakistani rupee was under further strain due to the first trading day of the week, traditionally a time of volatility. Despite this initial dip, there is cautious optimism about the rupee’s stability in the coming days. Analysts pointed out that support from export receipts and remittances from overseas Pakistanis could help stabilize the Pakistani rupee. Moreover, the country is expecting financial inflows from the International Monetary Fund (IMF), which could provide some relief and bolster the rupee’s value against the dollar.
However, the situation remains precarious. Analysts also expressed concern over the growing import bill, which has been exacerbated by the recent improvement in industrial activities. The reduction in electricity tariffs by the government is likely to boost production and, in turn, increase the demand for imports, further weighing on the value of the Pakistani rupee.
Despite these challenges, there is hope that the Pakistani rupee will remain range-bound in the near future, given the support from remittances and export receipts. Yet, with ongoing global and domestic economic uncertainties, the rupee’s performance against the dollar remains under close scrutiny.