KARACHI: The Pakistani Rupee (PKR) weakened slightly by 4 paisas against the US dollar on Monday, primarily due to increased demand for import and corporate payments. The rupee closed at Rs156.23 to the dollar in the interbank foreign exchange market, compared to the previous Friday’s closing rate of Rs156.19.
Currency dealers attributed the slight dip in the rupee’s value to the typical demand surge for the US dollar seen at the beginning of the trading week. The rupee initially faced a decline of over 10 paisas earlier in the day as the market opened with heightened dollar demand. However, improved inflows later in the day helped the rupee recover some of its early losses.
Market analysts noted that while short-term pressure on the rupee persists due to payment obligations, a reduction in the current account deficit and improving macroeconomic indicators could pave the way for the rupee to strengthen in the days ahead. The easing of the deficit is seen as a positive signal for stabilizing the rupee in the medium term.
In the open market, the rupee showed a slightly different trend, appreciating marginally against the dollar. The buying and selling rates for the dollar were recorded at Rs155.80 and Rs156.30, respectively, compared to the prior session’s rates of Rs155.90 and Rs156.40. This improvement in the open market suggests a balancing effect driven by individual and smaller-scale transactions.
The rupee’s performance continues to be influenced by a variety of factors, including external debt obligations, remittance inflows, and export earnings. Currency experts emphasized that sustained foreign investments and robust remittance figures could provide additional support to the rupee.
With corporate and import payment cycles exerting temporary pressure, the rupee remains sensitive to shifts in demand-supply dynamics. Nonetheless, the potential for appreciation in the rupee remains, as long as positive economic developments continue to bolster market confidence.
Monday’s activity highlights the ongoing interplay between domestic economic conditions and external financial pressures, with the rupee’s trajectory being closely watched by businesses and investors alike.
