Karachi, August 27, 2025 – The Pakistani rupee posted a modest gain against the US dollar on Wednesday, appreciating by three paisas in the interbank foreign exchange market.
The rupee closed at PKR 281.83 per dollar, compared to the previous day’s closing of PKR 281.86, reflecting a slight but positive shift in currency sentiment.
Market analysts noted that the rupee’s strengthening trend in the interbank market is largely driven by improved economic fundamentals. Rising remittance inflows, growing foreign investment, and a narrowing current account deficit have all contributed to a more stable currency environment. The rupee also found support from healthy foreign exchange reserves and reduced speculative activity.
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, reaching $19.571 billion as of August 15, 2025. Of this total, SBP reserves stood at $14.256 billion, reflecting a $13 million rise, while commercial banks held $5.315 billion, up by $61 million.
Experts believe that sustaining the rupee’s momentum will require disciplined import management, higher export earnings, and consistent capital inflows. They also stress the importance of keeping the interbank market stable to avoid unnecessary volatility.
However, challenges remain on the horizon. A surge in global oil prices or heightened geopolitical tensions could pressure the rupee once again, making prudent policy measures critical to maintain the gains in the interbank exchange rate.