Karachi, June 4, 2025 – The Pakistani rupee continued its downward trend on Wednesday, extending losses against the US dollar in the interbank foreign exchange market. At the close of trading, the rupee settled at PKR 282.22, marking a decline of 10 paisas from the previous day’s closing rate of PKR 282.12 in the interbank market.
Currency dealers attributed the rupee’s weakness to growing demand for the US dollar, particularly from importers and corporates anticipating higher duties and taxes in the upcoming federal budget. The government is scheduled to present the 2025–26 budget on June 10, and concerns over potential fiscal tightening have triggered advance import orders, accelerating foreign payments and putting additional pressure on the interbank exchange rate.
Despite the depreciation, the market witnessed robust inflows of foreign exchange, primarily from overseas remittances and export proceeds. With Eid-ul-Adha approaching, remittances from Pakistanis abroad have surged, helping support the local currency. Exporters, too, are actively converting their earnings into rupees to meet month-end obligations, offering some relief to the pressured interbank market.
“While the rupee is under short-term pressure due to increased outflows, healthy remittance inflows and exporter conversions are helping to maintain a degree of equilibrium,” said a senior currency analyst. He noted that the remittance surge linked to Eid is expected to continue over the next several days.
Analysts also pointed out that Pakistan’s foreign exchange reserves are on a gradual recovery path, aided by inflows from multilateral institutions and improved export earnings. If sustained, this trend could contribute to rupee stabilization by the end of the fiscal year.
Nevertheless, uncertainty persists. Continued outflows and concerns about the sustainability of the current account balance remain key risks. Market watchers are keeping a close eye on fiscal policy announcements, global oil price trends, and geopolitical factors, all of which will significantly influence the rupee’s path in the interbank market in the weeks ahead.