Karachi, July 8, 2025:
The Pakistani rupee began Tuesday’s trading session steady against the US dollar but weakened as the day progressed. By midday, the rupee hit its lowest level in 19 months, reflecting growing pressure on the currency.
At 10 am, the rupee held firm at Rs 284.22 in the interbank market, unchanged from the previous day. However, by noon, the dollar gained 18 paisas, pushing the rupee to Rs 284.40. In the open market, the dollar rose by 20 paisas, reaching Rs 286.85, marking the rupee’s weakest level since late 2023.
Currency experts say the rupee’s decline results from strong demand for the US dollar, mainly due to import payments. The State Bank of Pakistan’s efforts to boost foreign reserves by purchasing dollars also add to the pressure.
A senior currency dealer noted, “The central bank’s interventions, combined with external payments, are weighing down the rupee.” He added that the rupee might continue to weaken unless there is a significant inflow of foreign exchange through remittances or official aid.
Global events also played a role in the rupee’s drop. Former US President Donald Trump announced 25% tariffs on goods from Japan and South Korea, effective August 1. This news unsettled global currency markets. The Japanese yen fell to a two-week low against the dollar, and the South Korean won dropped nearly 1%.
Meanwhile, the US dollar remained strong, trading at 97.40 against a basket of major currencies. Investors are cautious, concerned about a possible escalation in trade tensions despite some openness to negotiating deadlines.
Adding to uncertainty, oil prices eased on Tuesday after recent gains. Brent crude fell by 21 cents to $69.37 a barrel, and US West Texas Intermediate declined by 24 cents to $67.69 a barrel. This followed an OPEC announcement of a production increase for August.
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