The Pakistani rupee recorded a slight gain against the US dollar at the conclusion of trading in the interbank foreign exchange market on Wednesday.
The rupee closed at PKR 281.60 per dollar, a touch stronger than the prior day’s closing level of PKR 281.61.
Currency analysts pointed out that this stability reflects rising confidence in the financial system.
They emphasized that effective regulatory actions along with positive economic indicators have enabled the rupee to remain firm.
The State Bank of Pakistan (SBP), in collaboration with law enforcement agencies, has stepped up its action against illegal currency operators, reducing speculative dealings that usually erode the rupee’s strength.
A gradual but consistent rise in foreign exchange reserves has further backed the local currency.
Official numbers revealed reserves climbing by $42 million during the week ending August 29, 2025, to reach $19.66 billion.
Analysts noted that although the rise is limited, it still supports sentiment and reassures investors about Pakistan’s external repayment capacity.
Additional momentum has come from robust remittance inflows and higher export receipts, both helping ease pressure on the current account.
Experts believe such inflows are vital in maintaining rupee-dollar parity under a tough global climate.
Yet, risks remain. Flood-related losses and higher import requirements could weigh on the rupee in the near term.
Nonetheless, the expected disbursement of $1 billion under the IMF’s Extended Fund Facility (EFF) later this month is projected to bring fresh stability, further strengthening the rupee’s position against the dollar.