Karachi, April 23, 2025 — The Pakistani rupee depreciated by 20 paisas against the US dollar on Wednesday, as the greenback gained strength in global currency markets.
The rupee closed at PKR 280.97 per dollar in the interbank foreign exchange market, compared to the previous day’s close of PKR 280.77.
Currency analysts noted that the rupee’s downward movement was largely influenced by the broader global trend, where most currencies weakened in the face of a resurgent dollar. The dollar’s strength was further reinforced after U.S. President Joseph Biden reversed his earlier stance on the Federal Reserve’s independence, signaling support for the Fed’s tightening measures. This shift bolstered investor confidence in the dollar, putting additional pressure on emerging market currencies, including the rupee.
Domestically, the rupee also faced headwinds from rising demand for dollars, driven by increased import payments and end-of-month corporate settlements. These payments have created temporary dollar shortages in the interbank market, exerting downward pressure on the rupee.
In recent weeks, the rupee has been gradually weakening against the dollar, reflecting a mix of domestic and external challenges. Among the most pressing issues is the ongoing uncertainty surrounding international trade dynamics, especially in light of U.S. tariff policies that have injected volatility into global financial markets.
Adding to the rupee’s woes is the decline in Pakistan’s foreign exchange reserves. According to the State Bank of Pakistan (SBP), reserves fell by $91 million during the week ending April 11, 2025, dropping to $15.662 billion from $15.753 billion. The continuous decline in reserves has raised concerns over the country’s capacity to meet near-term dollar obligations and maintain currency market stability.
Despite these challenges, experts maintain a cautiously optimistic view on the rupee’s outlook. They point to the country’s current account surplus, healthy export growth, and consistent remittance inflows as potential stabilizers. These factors, if sustained, could help the rupee recover some ground against the dollar in the medium term and restore confidence in Pakistan’s currency markets.