Karachi, April 21, 2025 – The Pakistani rupee on Monday weakened by 15 paisas against the US dollar, reflecting mounting pressure from persistent global economic uncertainty, particularly driven by intensifying tariff disputes.
At the close of trading in the interbank foreign exchange market, the rupee settled at PKR 280.87 to the dollar, down from Friday’s closing of PKR 280.72. This marginal slide underscores the ongoing volatility surrounding the rupee as global market jitters continue to weigh heavily on investor sentiment.
Currency experts attributed the latest depreciation to growing instability in global markets. They pointed to recent tariff initiatives introduced by the US government, which have triggered concerns of a prolonged global trade standoff. “The rupee is reacting to broader global cues,” said one analyst. “Any sustained tension in global trade will inevitably put downward pressure on the rupee.”
Additionally, the timing of the trading week also played a role. Analysts noted that Mondays often bring speculative pressure as traders reassess their positions based on weekend developments, especially in relation to global markets and dollar movements.
Further adding to the rupee’s woes is a decline in the country’s foreign exchange reserves. According to the State Bank of Pakistan (SBP), reserves dropped by $91 million for the week ending April 11, 2025, falling to $15.662 billion from $15.753 billion the previous week. This erosion in reserves casts a shadow over Pakistan’s near-term ability to manage its external dollar-denominated obligations.
Despite these concerns, experts maintain a cautiously optimistic outlook. They cite encouraging signs such as a surplus in the current account, steady export earnings, and robust inflows of remittances. These factors, if sustained, could help the rupee stabilize and gradually recover against the dollar.
Moving forward, markets will be closely monitoring global oil prices, geopolitical tensions, and shifts in central bank policies—all of which could decisively influence the rupee-dollar dynamic in the weeks ahead. In such a climate, the rupee remains vulnerable, but not without prospects for recovery.