KARACHI, July 14, 2025 – The Pakistani Rupee (PKR) posted a modest decline against the US Dollar (USD) in Monday’s interbank trading, closing at PKR 284.72, down by 26 paisa or 0.09% from the previous day’s rate of PKR 284.46.
During the trading session, the PKR fluctuated between a high of 285.0 and a low of 287.2, indicating continued market volatility. In the open market, exchange companies quoted the dollar at PKR 284.90 (buying) and PKR 287.10 (selling).
Performance Against Other Currencies
The rupee showed mixed performance against other major currencies:
- Euro (EUR): Declined by 0.22% to PKR 339.49
- British Pound (GBP): Gained 0.20% to PKR 382.85
- Swiss Franc (CHF): Dropped 0.10% to PKR 360.96
- Japanese Yen (JPY): Marginal increase to PKR 1.9717
- Chinese Yuan (CNY): Fell slightly to PKR 39.76
- Saudi Riyal (SAR): Rose to PKR 75.89
- UAE Dirham (AED): Increased to PKR 77.47
Money Market and Economic Indicators
The 6-month Karachi Interbank Bid and Offer Rates (KIBOR) remained stable, with a slight dip of 1 basis point to 10.74% (bid) and 10.99% (offer). So far this year, the rupee has depreciated by PKR 6.02 (2.11%), and by 10.66 paisa (0.04%) during the current fiscal year, reflecting ongoing economic challenges.
Economic Implications
The minor depreciation of the PKR has broader implications for Pakistan’s economy. Rising import costs for essentials such as oil and food are fueling inflation and squeezing household budgets. Businesses are facing higher operating expenses, which may result in product price hikes or even job cuts.
Additionally, remittance values decline when converted to PKR, impacting families dependent on foreign income. Public debt servicing costs increase as more rupees are needed to repay foreign loans, adding further pressure on government finances.
With the global dominance of the US Dollar in trade and finance, fluctuations in the exchange rate remain critical for Pakistan’s economic stability. The State Bank of Pakistan continues to monitor market trends to manage the rupee’s value amid domestic and international developments.
