Karachi, August 26, 2025 – The Pakistani rupee showed a minor improvement against the US dollar in Tuesday’s interbank session, gaining one paisa by the day’s close.
The rupee settled at PKR 281.86 against the dollar, compared to the previous day’s closing of PKR 281.87, reflecting a steady yet cautious upward move.
Currency market observers attributed the rupee’s slight gain to improved economic conditions, including higher remittance inflows, increased foreign investment, and a narrowing current account deficit. Analysts also pointed to stable foreign exchange reserves and reduced speculative trading as factors supporting the local currency’s performance against the dollar.
According to the State Bank of Pakistan (SBP), overall foreign exchange reserves rose by $74 million during the past week, reaching $19.571 billion as of August 15, 2025. Of this, SBP-held reserves stood at $14.256 billion after an increase of $13 million, while commercial banks maintained $5.315 billion, up by $61 million.
Experts believe the rupee’s appreciation can only be maintained through disciplined import management, growth in exports, and consistent capital inflows. They also stress the importance of ensuring market stability to avoid sharp currency fluctuations that could strengthen the dollar again.
However, potential challenges remain. A surge in global oil prices or heightened geopolitical risks could put renewed pressure on the local currency, making it crucial for economic managers to maintain confidence in the interbank market and safeguard gains made so far.