The Pakistani Rupee (PKR) strengthened against the US Dollar (USD) in the interbank market on Tuesday, closing at Rs. 281.96. This marked an appreciation of 05 paisa compared to the previous day’s closing of Rs. 282.01, according to the State Bank of Pakistan (SBP).
This is the strongest position of the rupee against the US Dollar since mid-May 2025, reflecting the government’s recent crackdown on dollar smuggling and black market trading.
Crackdown on Dollar Black Market
Currency dealers and analysts say the crackdown on illegal dollar trade has boosted confidence in the interbank market. Authorities have tightened monitoring at airports, border areas, and currency exchange centers, curbing speculative activity. As a result, demand for dollars in the informal market has dropped, helping the rupee gain strength in official channels.
Euro, Pound, Yen Also Decline
The rupee also showed a positive trend against other major currencies.
- The Euro slipped by 04 paisa, closing at Rs. 329.24 compared to Rs. 329.28 on Monday.
- The Japanese Yen dropped by 01 paisa, ending at Rs. 190.00.
- The British Pound fell sharply by 82 paisa, closing at Rs. 381.01 against Rs. 381.83 previously.
The fall of these currencies against the rupee reflects improved sentiment and increased inflows through official banking channels.
Gulf Currencies See Minor Changes
The exchange rate of Gulf currencies also recorded slight declines.
- The Emirates Dirham dropped by 02 paisa, settling at Rs. 76.76.
- The Saudi Riyal fell by 03 paisa, closing at Rs. 75.13.
These small changes suggest that stability in the interbank market is translating into balanced rates across multiple currencies.
Strengthening Market Confidence
The rupee’s appreciation against the dollar is seen as a positive development for Pakistan’s economy. Importers benefit from lower costs when the rupee gains strength, which can help reduce inflationary pressures. A stronger rupee also improves the government’s ability to manage foreign debt repayments, as fewer local resources are needed to meet obligations in US dollars.
Market experts believe the improvement in the rupee’s value will continue if inflows from exports and remittances remain steady. The role of the IMF program is also critical, as it ensures that the SBP maintains adequate reserves to support the local currency.
Outlook for Coming Weeks
Economists remain cautiously optimistic. They note that while the rupee’s recent gains are encouraging, external pressures such as rising global oil prices and debt repayments could still pose challenges. Political stability and consistent enforcement against illegal currency trading will be key to sustaining the rupee’s strength against the US dollar.
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