The Pakistani rupee (PKR) faced a slight decline against the US dollar (USD) during the interbank market on April 3, 2025, marking a depreciation of 39.56 paisa, or 0.14%. The currency closed at PKR 280.56 per USD, a decrease from the previous session’s closing rate of PKR 280.16. This small drop highlights the continuing pressure on the local currency amid economic challenges and global market fluctuations.
Throughout the day, the PKR exhibited some volatility, with the currency reaching an intraday high of PKR 280.60 and a low of PKR 280.55. The interbank market reflects the real-time fluctuations in exchange rates, and these minor changes are a typical reflection of market sentiment and supply-demand dynamics.
In the open market, exchange companies quoted a buying price of PKR 279.50 and a selling price of PKR 281.90 for the US dollar. This gap between buying and selling rates in the open market indicates a slight disparity in the exchange rates from the official interbank rates, highlighting the role of market speculation and liquidity constraints in the currency market.
The depreciation of the PKR was not limited to the US dollar alone. The local currency also weakened against several major global currencies. The PKR fell by 5.52 rupees or 1.82% against the Euro, which closed at PKR 307.94, up from PKR 302.42 on the previous day. Similarly, the British Pound (GBP) saw a decline of 5.67 rupees, or 1.56%, closing at PKR 368.64 compared to the previous rate of PKR 362.97.
Other significant depreciations included the Swiss Franc (CHF), where the PKR weakened by 5.42 rupees or 1.70%, closing at PKR 323.17, and the Japanese Yen (JPY), which saw a fall of 4.32 paisa, or 2.32%, closing at PKR 1.9051. These reductions across multiple currencies reflect broader challenges facing the PKR in the global market.
However, not all was negative for the local currency. The Pakistani rupee strengthened against the Chinese Yuan (CNY), gaining 15.39 paisa, or 0.40%, to close at PKR 38.42, up from PKR 38.58. The PKR also appreciated slightly by 9.55 paisa, or 0.13%, against the Saudi Riyal (SAR), closing at PKR 74.79. Additionally, the PKR fell marginally by 10.66 paisa, or 0.14%, against the UAE Dirham (AED), ending at PKR 76.38.
Looking at the year-to-date performance, the PKR has depreciated by 2.22 rupees, or 0.79%, against the US dollar. This drop indicates a continued weakening of the local currency compared to the USD, a trend that has raised concerns among economists and market analysts about the long-term stability of the PKR. For the current calendar year, the rupee has depreciated by 2.01 rupees, or 0.72%, against the US dollar.
In the money market, the benchmark 6-month Karachi Interbank Bid and Offer (KIBOR) rates inched down by 1 basis point, closing at 11.87% and 12.12%, respectively. This minor reduction in interbank rates signals a subtle change in market expectations regarding interest rates and inflationary pressures.
The fluctuations in the value of the Pakistani rupee against major currencies are part of a broader trend of volatility in emerging market currencies, influenced by both domestic economic factors and global developments. While the depreciation of the PKR may make imports more expensive and contribute to inflationary pressures, it may also benefit exports by making Pakistani goods cheaper for foreign buyers.
As we move further into the fiscal year, analysts will continue to monitor the performance of the PKR against global currencies, especially the US dollar, which remains a significant benchmark for international trade. Given the volatile economic environment, market participants are likely to remain cautious, watching closely for any further shifts in exchange rates.