The Pakistani Rupee (PKR) continued its downward trajectory against the US Dollar (USD) as the local currency weakened further in the final week of April 2025. After opening at 282 in the interbank market, the PKR remained under pressure throughout the trading session and eventually closed at the 281 level.
Throughout the day, the interbank rate hovered between 280 and 282 per dollar, indicating persistent bearish sentiment. By the end of the session, the PKR depreciated by 10 paisas against the USD, marking a 0.03 percent decline on a day-on-day (DoD) basis and closing at 281.07.
In the open market, similar trends were observed with exchange rates remaining between 282 and 283 per dollar across various currency counters. The rupee’s performance against the greenback reflects ongoing market stress, likely driven by a combination of external economic pressures, demand for foreign currency, and concerns surrounding upcoming macroeconomic indicators.
The depreciation comes despite relative calm in policy settings, with the State Bank of Pakistan (SBP) recently reaffirming its real GDP growth target of 2.5 to 3.5 percent for the current fiscal year. However, the broader economic outlook remains cautious, and currency markets continue to respond to global monetary movements, international commodity prices, and local fiscal conditions.
Since the beginning of the fiscal year, the rupee has lost nearly 0.98 percent of its value against the US Dollar, highlighting the ongoing structural challenges facing Pakistan’s currency. The slow but steady depreciation underscores the balancing act that policymakers must maintain between supporting economic growth and managing inflation and currency reserves.
Beyond the USD, the PKR also registered losses against several other major global currencies in today’s interbank market. It weakened by two paisas against the UAE Dirham (AED) and Saudi Riyal (SAR), reflecting consistent demand for these regional currencies, typically used for trade and remittances.
In more significant losses, the rupee fell by eight paisas against the Canadian Dollar (CAD) and by 87 paisas against the British Pound (GBP), a notable drop that reflects volatility in cross-currency exchange amid strengthening foreign currencies globally.
However, there was a slight silver lining, as the PKR gained 34 paisas against the Australian Dollar (AUD), suggesting some selective currency realignments depending on broader forex trends and commodity market dynamics.
The minor recovery against the AUD, however, does little to offset the overall bearish sentiment dominating the local currency market. Forex analysts suggest that without decisive improvements in trade balance, foreign exchange reserves, and foreign direct investment inflows, the rupee may remain under pressure in the coming weeks.
As the country heads into May, market watchers will be closely monitoring the performance of the PKR in light of upcoming economic data releases, government borrowing trends, and any new developments in negotiations with international lenders or multilateral institutions.
The consistent fluctuations in the rupee’s value underline the importance of macroeconomic stability and policy clarity in restoring confidence in the currency and safeguarding Pakistan’s external sector health.