Karachi, September 4, 2025 – The Pakistani rupee continued its positive momentum on Thursday, posting a modest gain of four paisas against the US dollar in the interbank foreign exchange market.
By the end of the day, the rupee closed at PKR 281.67 compared to the previous session’s level of PKR 281.71 per dollar.
Currency traders noted that the sustained performance of the rupee reflects improved investor confidence and stronger external account indicators. Analysts pointed to several contributing factors, including robust inflows from overseas Pakistanis through remittances, higher export receipts, and cautious interventions by the State Bank of Pakistan (SBP) to maintain orderly market conditions.
Fresh data from the SBP also supported this view. Pakistan’s total foreign exchange reserves recorded an increase of $47 million, climbing to $19.618 billion for the week ending August 22, 2025. Of this, the central bank’s reserves grew by $18 million to $14.274 billion, while commercial banks’ holdings advanced by $27 million to $5.344 billion. The improvement in reserves has provided additional backing for the rupee and reinforced stability against the dollar.
Experts suggest that further inflows, particularly from the International Monetary Fund (IMF) under the Extended Fund Facility (EFF), could add more strength to the rupee in the weeks ahead. A stronger reserve position would also help shield the economy from volatility in global currency markets, where the dollar remains the dominant benchmark.
As the rupee sustains its upward trajectory and the dollar trades in a relatively narrow band, overall sentiment in the currency market appears cautiously optimistic heading into September.