Rupee Drops to 290 Against US Dollar in Open Market

The Pakistani rupee continued its downward trend, falling to 290 against the US dollar in the open market. Currency dealers in major cities including Islamabad and Karachi reported high demand for the dollar, pushing rates up to this level despite ongoing efforts by the State Bank of Pakistan to stabilize the market.

In the interbank market, the rupee also experienced slight depreciation, closing around 284.2 against the dollar. The drop of nearly 25 paisa in a single session highlights the growing pressure on the local currency amid rising import bills and foreign exchange shortages.

According to market analysts, the widening trade deficit, increased energy-related imports, and a surge in corporate dollar buying have all contributed to this recent decline. The rupee’s fall also reflects ongoing uncertainty surrounding external inflows and a delay in key funding from global lenders.

The drop, however, has marginally benefited overseas Pakistanis, who are receiving better rates when sending remittances through legal channels. Despite this short-term gain, experts warn that the long-term impact on inflation and import costs could outweigh any temporary relief.

The government’s fiscal year projections had already assumed an average rate of 290 against the dollar, signaling that further depreciation could strain budgetary targets. Economists warn that unless there is a significant improvement in foreign reserves or inflows through remittances and exports, the rupee may continue to weaken.

Other major currencies followed a similar pattern, with the euro and British pound gaining ground in the open market. The rupee, however, remained relatively stable against regional currencies like the UAE dirham and Saudi riyal.

The central bank is expected to monitor the currency situation closely in the coming weeks. Officials have stated that regulatory and monetary tightening, coupled with increased remittance flow during the summer, may offer some support to the rupee. However, much will depend on external financing and geopolitical developments.

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