Karachi, July 11, 2025 – The Pakistani rupee finally snapped its five-day streak of losses against the US dollar on Friday, buoyed by a major surge in the country’s foreign exchange reserves.
This rebound offers a temporary breather for a currency that had been under pressure since the start of the new fiscal year.
The rupee appreciated by 10 paisas, closing at PKR 284.46 per dollar, compared to Thursday’s close of PKR 284.56 in the interbank market. Before this, the rupee had suffered continuous depreciation over five consecutive trading sessions—its longest streak of losses in recent weeks.
Market experts noted that despite strong demand for the dollar, the increase in Pakistan’s reserves has injected positive sentiment into the currency market. The State Bank of Pakistan (SBP) reported on Thursday that the country’s foreign exchange reserves have surged past the $20 billion mark for the first time in over three years—a significant achievement for Pakistan’s economic recovery.
According to SBP data, total reserves rose by $1.938 billion in just one week, reaching $20.029 billion as of July 4, 2025. This compares with $18.091 billion recorded on June 27. The last time Pakistan’s reserves were above $20 billion was on March 18, 2022.
Despite the encouraging development, analysts caution that the rupee remains vulnerable. The start of fiscal year 2025–26 has seen renewed dollar demand from importers who had previously held back purchases due to budget-related uncertainties. Additionally, multinational companies are actively converting rupee holdings into dollars to repatriate profits, further pressuring the market.
Currency analysts suggest that the current volatility is part of a seasonal streak often observed at the beginning of a fiscal cycle. Although the rupee’s short-term weakness is concerning, it is not entirely unexpected.
On a brighter note, the SBP highlighted record-breaking remittances of $38.3 billion for FY 2024–25, a 26.6% increase from the previous year. These inflows, along with a 9.47% drop in the June 2025 trade deficit reported by the Pakistan Bureau of Statistics (PBS), offer much-needed support that could help the rupee stabilize and potentially reverse its recent streak of instability.