Rupee Struggles but Keeps Record Streak Against Dollar

The Pakistani Rupee (PKR) managed to extend its record-long gaining streak against the US Dollar (USD) on Friday, although with a marginal appreciation compared to previous sessions.

According to data released by the State Bank of Pakistan (SBP), the local currency closed at Rs 277.46 per dollar, gaining just 5 paisas in the interbank market.

• Closing Rate: Rs 277.46 per USD

• Daily Gain: +0.05 PKR (5 paisas)

• Streak Length: 13 consecutive sessions

• Reason: Improved foreign inflows, IMF funding, and controlled demand for dollars

• Source: State Bank of Pakistan (SBP)

Analysts attribute the rupee’s recovery to several positive economic developments:

• IMF Support: The successful release of the IMF loan tranche boosted investor confidence.

• Improved Remittances: Inflows from overseas Pakistanis have strengthened the foreign exchange reserves.

• Controlled Imports: Government policies restricting non-essential imports have reduced dollar demand.

• Increased Exports: A slight rebound in export earnings has added stability to the currency market.

Currency experts believe the rupee’s sustained recovery reflects a more stable economic environment, but they caution that volatility remains possible if global oil prices rise or import pressures increase.

“While the rupee’s rally is encouraging, Pakistan still faces external financing challenges. Any disruption in foreign inflows or rise in international oil prices could reverse these gains,” said a senior forex market analyst.

• Positive Effects:

• Lower import bills

• Reduced inflationary pressure

• Enhanced investor confidence

• Risks Ahead:

• Potential increase in oil prices

• Uncertainty in global commodity markets

• Dependence on continued IMF support

The Pakistani Rupee has achieved a remarkable milestone by maintaining its longest-ever winning streak against the US Dollar, reflecting improving economic indicators and enhanced foreign inflows.

However, experts warn that sustaining this momentum will require careful policy measures, controlled imports, and stable global markets. While the gains are promising, economic stability remains fragile and closely tied to external financing and global economic trends.

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