Karachi, April 21, 2025 – The Pakistani Rupee (PKR) recorded a marginal depreciation against the US Dollar in the inter-bank market on Monday, as currency markets continued to react to geopolitical and macroeconomic developments around the globe. The local currency fell by 0.05%, closing at Rs. 280.87 against the greenback, down 15 paisas from Friday’s closing rate of Rs. 280.72.
This minor shift in the rupee’s position came amid a broader wave of volatility in international currency markets, largely influenced by growing uncertainty over the future leadership of the US Federal Reserve. The dollar itself tumbled globally as investor sentiment soured over reports of potential political interference in the central bank’s independence.
The decline in the dollar began in early Asian trading hours on Monday following remarks by White House economic adviser Kevin Hassett, who stated that President Donald Trump’s administration was still exploring whether it could legally dismiss Federal Reserve Chair Jerome Powell. Just a day earlier, Trump had intensified his criticism of Powell, stating that his removal “cannot come fast enough” while pushing for immediate interest rate cuts.
These developments weighed heavily on the dollar’s performance. The US currency hit a three-year low against the euro, slid to a seven-month trough against the Japanese yen, and fell 0.9% against the Swiss franc—signaling a global retreat from the dollar as concerns grew over political intervention in US monetary policy.
In Pakistan’s inter-bank market, the rupee-dollar bid rate was reported at Rs. 280.86, while the offer stood at Rs. 281.06. Though the daily change was relatively minor, it marked a continuation of the rupee’s cautious response to international currency dynamics and market sentiment.
Meanwhile, in the open market, the rupee also recorded a slight dip against the greenback. The buying rate slipped by 20 paisas to Rs. 280.60, while the selling rate edged down by 3 paisas to Rs. 282.33. This moderate weakening was also mirrored in the rupee’s performance against other major currencies.
Against the euro, the PKR lost Rs. 4.87 on the buying side and Rs. 4.96 on the selling side, closing at Rs. 322.65 and Rs. 325.94, respectively. The rupee also fell against Gulf currencies: the UAE dirham rose by 11 paisas for buying (Rs. 76.41) and 9 paisas for selling (Rs. 77.12), while the Saudi riyal gained 10 paisas and 13 paisas, reaching Rs. 74.66 and Rs. 75.37, respectively.
Currency traders noted that overall market activity was subdued due to Easter Monday, with several global markets including Australia and Hong Kong closed. The limited liquidity contributed to thinner trading volumes and slightly exaggerated price movements across several forex pairs.
Additionally, crude oil prices, which are closely linked to currency parity, also saw declines. Brent crude futures fell by 1.4% to $66.99 per barrel, while US West Texas Intermediate dropped 1.5% to $63.72. These corrections followed concerns that escalating trade tensions and renewed tariff threats from the US could weigh on global demand growth for fuel—adding another layer of uncertainty to financial markets.
While the rupee’s movement on Monday was relatively restrained, it continues to reflect Pakistan’s careful navigation through a complex global economic environment. With external factors such as US fiscal policy, oil prices, and regional trade playing pivotal roles, the coming days may provide further insight into the rupee’s short-term direction.