Karachi, August 25, 2025 – The Pakistani rupee continued its upward momentum on Monday, posting a modest appreciation against the greenback in the interbank foreign exchange market.
The rupee gained three paisas to close at PKR 281.87 per dollar, compared to last Friday’s closing of PKR 281.90.
Currency dealers attributed the rupee’s steady performance to improved economic indicators, including increased foreign direct investment, rising remittances, and a narrowing current account deficit. Analysts also credited stronger foreign exchange reserves and reduced speculative trading for easing pressure on the local currency against the greenback.
According to the State Bank of Pakistan (SBP), foreign exchange reserves climbed by $74 million over the previous week, reaching $19.571 billion as of August 15, 2025. Of this, SBP-held reserves rose by $13 million to $14.256 billion, while commercial banks added $61 million to stand at $5.315 billion.
Market experts caution that sustaining the rupee’s appreciation will depend on disciplined import controls, consistent export growth, and further capital inflows. They also emphasize that maintaining interbank market confidence is key to preventing sharp swings in the exchange rate and ensuring the greenback does not regain strength abruptly.
The rupee may face mild volatility if global oil prices rise or geopolitical tensions increase, potentially supporting the greenback’s short-term demand.