Karachi, August 28, 2025 – The Pakistani rupee strengthened slightly against the US dollar on Thursday, posting a modest gain of three paisas in the interbank foreign exchange market.
The rupee closed at PKR 281.80 per dollar compared to the previous day’s closing rate of PKR 281.83, marking a continuation of its gradual upward trend.
Currency experts attributed the rupee’s improvement to steady inflows from remittances and export earnings, which have helped improve liquidity and ease pressure on the exchange rate. They noted that a stable inflow of foreign currency has played a crucial role in supporting the rupee in recent sessions.
Market analysts believe the rupee’s appreciation reflects improving macroeconomic fundamentals, including a narrowing current account deficit, healthy foreign exchange reserves, and rising investor confidence. Additionally, reduced speculative activity in the currency market has provided further stability.
According to data released by the State Bank of Pakistan (SBP), the country’s total foreign exchange reserves increased by $74 million during the previous week, standing at $19.571 billion as of August 15, 2025. SBP reserves reached $14.256 billion, reflecting a $13 million rise, while commercial banks held $5.315 billion, up by $61 million.
Analysts caution, however, that external factors such as global oil price hikes or regional geopolitical tensions could exert downward pressure on the rupee. Sustaining its recent momentum will require disciplined fiscal policies, higher export earnings, and consistent capital inflows to maintain stability in the interbank exchange market.