Karachi, April 11, 2025 – The Pakistani rupee continued its upward trend against the US dollar on Friday, buoyed by a sharp decline in international oil prices and improving macroeconomic indicators.
According to data from the interbank foreign exchange market, the rupee appreciated by nine paisas to settle at PKR 280.47 against the dollar, compared to the previous day’s closing rate of PKR 280.56. This minor but meaningful gain reflects growing optimism around Pakistan’s external position, especially as oil—a major import commodity—becomes cheaper in global markets.
Currency market analysts attributed the rupee’s improved performance to the ongoing drop in oil prices, which has eased pressure on the country’s dollar payments. As Pakistan relies heavily on oil imports, a decline in oil prices reduces the demand for dollars, thereby supporting the rupee.
In addition, expectations of upcoming inflows from the International Monetary Fund (IMF) and other multilateral lenders have bolstered sentiment in favor of the rupee. These anticipated dollar inflows are viewed as a buffer against potential external shocks, contributing to currency stability.
The State Bank of Pakistan (SBP) also reported a rise in foreign exchange reserves. According to SBP data, the country’s forex reserves increased by $173 million in the week ending April 4, 2025, bringing total reserves to $15.753 billion, up from $15.58 billion the week prior. This uptick has further enhanced the rupee’s standing against the dollar.
Experts noted that steady inflows from worker remittances and export earnings are likely to offer additional support to the rupee in the near term. These dollar inflows help stabilize supply in the currency market and reduce volatility.
However, analysts also issued a note of caution. With escalating global trade tensions, there is a risk of panic dollar buying by importers and corporate entities, which could put renewed pressure on the rupee. Any significant shift in geopolitical or economic conditions may quickly reverse current trends.
Still, for now, the outlook remains cautiously optimistic. The combination of lower oil prices, steady dollar inflows, and a modest rise in forex reserves is helping the rupee hold its ground amid global uncertainty.