Karachi, April 22, 2025 – The Pakistani rupee posted a modest recovery of 10 paisas against the US dollar on Tuesday, buoyed by increased inflows from remittances and export receipts, which helped ease pressure in the interbank foreign exchange market.
The rupee closed at PKR 280.77 per dollar, up from the previous day’s closing rate of PKR 280.87, reflecting a mild but welcome improvement amid ongoing currency volatility. Currency dealers attributed this recovery to a rise in daily inflows from overseas Pakistanis and exporters, which temporarily offset the demand from importers and corporate sectors.
Market analysts observed that despite prevailing external pressures, the day’s inflows played a crucial role in stabilizing the rupee. “There was definite pressure from payment-side demand,” one analyst explained, “but consistent dollar inflows throughout the trading day gave the rupee a much-needed breather.”
In recent sessions, the rupee had been under pressure, declining against the dollar due to a combination of global and domestic factors. One major concern is the ongoing trade uncertainty stemming from tariff-related moves by the United States, which has led to heightened volatility in international markets. Additionally, the dip in Pakistan’s foreign exchange reserves has continued to cast a shadow over the country’s financial stability.
According to the State Bank of Pakistan (SBP), foreign reserves fell by $91 million during the week ending April 11, 2025, slipping to $15.662 billion from $15.753 billion. The erosion in reserves raises concerns about Pakistan’s ability to meet short-term dollar liabilities and maintain investor confidence.
Nonetheless, experts remain cautiously optimistic about the rupee’s medium-term prospects. They cite a current account surplus, steady growth in export performance, and resilient inflows of remittances as positive indicators that could support the rupee against the dollar in the coming weeks.
If these inflows remain consistent, the rupee may continue to regain some of its lost ground, offering relief to both the government and private sector facing external debt obligations.