Karachi, September 8, 2025 – The Pakistani rupee continued its upward trajectory on Monday, registering another small but notable gain against the US dollar in the interbank foreign exchange market.
At the close of trading, the rupee appreciated by three paisas, settling at PKR 281.62 per dollar compared to last Friday’s interbank closing of PKR 281.65.
Market observers said that the persistent strengthening of the rupee signals improving stability in the currency market. A combination of regulatory actions and positive economic indicators has played a role in this performance. The State Bank of Pakistan (SBP), in collaboration with law enforcement agencies, has taken strict action against illegal currency dealers, which has reduced speculative activity and brought greater discipline to the interbank system.
Another factor favoring the rupee is the gradual improvement in foreign exchange reserves. Official figures revealed that reserves increased by $42 million during the week ending August 29, 2025, rising to $19.66 billion from $19.62 billion a week earlier. Though modest, this build-up in reserves has contributed to strengthening confidence in the interbank market.
In addition, higher inflows of overseas remittances and improved export receipts have eased external payment pressures, helping the rupee maintain its gains. Analysts pointed out that such inflows have been crucial in stabilizing the rupee-dollar parity.
Nevertheless, experts cautioned that risks remain. The recent flood-related losses and growing import requirements could put the rupee under renewed strain. However, the expected disbursement of $1 billion under the IMF’s Extended Fund Facility (EFF) later this month is likely to provide a much-needed buffer, further stabilizing the interbank exchange rate in the near term.