KARACHI – April 22, 2025: The Pakistani rupee registered a slight gain against the US dollar in the inter-bank market on Tuesday, offering a small but notable sign of stability amid broader volatility in the global financial system. According to data released by the State Bank of Pakistan (SBP), the local currency appreciated by 0.04%, closing at PKR 280.77 against the greenback—a gain of Re0.10 from Monday’s closing rate of PKR 280.87.
Though modest, the uptick in the rupee’s value reflects improving sentiment around Pakistan’s economic outlook, particularly following continued dialogue with the International Monetary Fund (IMF) and signs of policy continuity. The appreciation also comes at a time when the global currency landscape is experiencing turbulence, primarily due to political pressure on central banks and geopolitical uncertainties.
In international markets, the US dollar remained under considerable stress, lingering near its lowest level in three years. The slide was triggered by renewed and intensifying attacks from former President Donald Trump on Federal Reserve Chair Jerome Powell. In a Truth Social post on Monday, Trump labeled Powell a “major loser” and demanded an immediate cut to interest rates, warning that the U.S. economy was at risk of stalling without monetary stimulus.
These comments have amplified concerns about the Federal Reserve’s independence and shaken investor confidence in the dollar. The greenback also edged closer to a decade-low against the Swiss franc and hovered near a three-and-a-half-year trough versus the euro. Analysts view these developments as catalysts for potential shifts in capital flows toward emerging markets, including Pakistan, where relative stability in currency markets and ongoing IMF support are acting as stabilizing factors.
Further compounding the situation are fluctuating oil prices, which traditionally have a significant impact on currency valuations, especially for energy-importing countries like Pakistan. On Tuesday, global crude benchmarks saw a rebound after sharp losses the previous day. Brent crude futures rose by 51 cents (0.8%) to $66.77 per barrel, while US West Texas Intermediate (WTI) crude also climbed 0.8%, reaching $63.59 per barrel.
Monday’s drop in oil prices had been driven by reports of progress in nuclear deal negotiations between the United States and Iran, which, if finalized, could lead to increased global oil supply and lower prices. However, short-covering and market recalibrations in Tuesday’s session contributed to a temporary price bounce.
In this context, the rupee’s marginal appreciation reflects a mix of local resilience and global uncertainty. While the improvement is minimal, it suggests that Pakistan’s currency is relatively insulated—at least in the short term—from some of the more dramatic fluctuations affecting major global currencies.
Market participants remain cautious, however, noting that the rupee’s stability will depend heavily on continued foreign exchange inflows, remittance strength, and the government’s ability to meet IMF reform commitments. Traders are also closely watching further developments in U.S. monetary policy and geopolitical trends, which could impact investor behavior and capital movement across emerging markets.
As the global financial landscape remains unpredictable, the rupee’s performance in coming days will serve as a key indicator of Pakistan’s monetary health and investor sentiment.