KARACHI, April 17, 2025 – The Pakistani Rupee (PKR) extended its upward momentum against the US Dollar (USD) for the second consecutive day, signaling a brief but notable reprieve amid ongoing global economic pressures. In Thursday’s interbank trading session, the PKR appreciated by 0.04% on a day-on-day (DoD) basis, gaining 10 paisas to close at PKR 280.46 per USD.
The local currency opened the day’s session at the 280 level and maintained a tight trading band between 280 and 281 throughout the session. Despite global headwinds and a broadly stronger US Dollar in international markets, the rupee held firm, signaling underlying resilience in Pakistan’s currency markets.
Open market rates mirrored the interbank performance, hovering around 281 PKR/USD across multiple currency exchange counters. Traders reported relatively stable demand for the greenback, and there were no major spikes in volatility during the trading session.
This latest gain against the US Dollar comes at a time when global currencies, particularly from emerging markets, are facing mounting pressure due to rising US treasury yields and persistent geopolitical uncertainty. However, the PKR has managed to buck the trend—albeit modestly—driven by improved sentiment and a relative easing of demand for foreign exchange in the domestic market.
Currency dealers attribute the stability to a combination of factors, including cautious import activity, improved remittance inflows, and regulatory oversight by the State Bank of Pakistan (SBP), which has played a key role in maintaining market discipline. Additionally, the upcoming Eid holiday period has led to increased foreign exchange availability, particularly from overseas Pakistanis sending funds home, providing short-term support to the rupee.
Alongside the dollar, the PKR also posted gains against several other major currencies in today’s trading. While the specifics of cross-currency movements are still being tallied, early market data indicates upward performance against currencies such as the Euro, Swiss Franc, and Chinese Yuan.
This two-day winning streak comes after weeks of mixed performance by the rupee, which has faced sustained pressure due to Pakistan’s external financing needs, debt servicing obligations, and delayed disbursements from global lenders. Market analysts caution that while these short-term gains are encouraging, the rupee remains vulnerable to broader macroeconomic challenges.
Analysts further note that the coming weeks will be critical for the local currency, especially as Pakistan navigates its negotiations with the International Monetary Fund (IMF) for a new financing program and awaits inflows from multilateral donors and friendly nations. Any developments on this front will likely have a direct impact on the rupee’s trajectory.
In the meantime, the rupee’s resilience offers temporary relief to importers and policymakers, while also supporting sentiment in the capital and money markets. However, economic observers continue to urge caution, highlighting the importance of structural reforms, consistent foreign inflows, and prudent fiscal management to ensure long-term currency stability.
As the global financial landscape remains volatile, all eyes will be on how the rupee performs in the days leading up to the next round of economic data releases and fiscal announcements from the government.