Pakistani currency loses ground against the U.S. dollar, experiencing a further depreciation.
The Pakistani rupee (PKR) experienced a modest depreciation against the US dollar (USD) from March to July 2025, with the USD/PKR exchange rate fluctuating between 280 and 293 PKR per USD. This trend aligns with the broader strengthening of the USD globally.
Since March 2025, the PKR has generally depreciated against the USD. The highest exchange rate spike was on March 10, 2025, when 1 USD was worth 293.33 PKR. The lowest rate in 2025 was about 278.48 PKR in January, indicating a weakening of the PKR over time. The average exchange rate for 2025 so far is approximately 280.8 PKR per USD, reflecting a roughly 2% appreciation of the USD against PKR in 2025.
The weakening of the PKR is influenced by external factors such as US trade policies potentially tightening and higher international oil prices increasing Pakistan’s import costs. Historically, stricter US trade policies or tariffs can cause pressure on emerging market currencies, including the PKR, by reducing export competitiveness or foreign investment inflows. This tends to strengthen the USD relative to the PKR.
Pakistan is a net importer of oil, so higher global oil prices increase the country’s import bill, worsening the current account deficit and putting downward pressure on PKR. Conversely, any decrease in oil prices would ease this pressure. Although exact oil price data for this period is not available, persistent high or rising international oil prices would typically contribute to PKR depreciation against the USD.
On Wednesday, the USD/PKR open-market rates were BID Rs 286.00 and OFFER Rs 287.00. The Pakistani rupee also declined against other major currencies, such as the Euro and the Saudi Riyal, and strengthened slightly against the UAE Dirham and the Sterling.
It's important to note that for precise attribution of changes to specific US policy moves or oil price shifts, more detailed economic reports or trade policy updates would be needed beyond the exchange rate data provided. Oil prices rose on Wednesday, lifted by attacks on shipping in the Red Sea and a forecast for lower US oil production. US West Texas Intermediate crude was up 15 cents on Wednesday.
The US dollar index was steady at 97.582 on Wednesday, and Sterling traded at $1.35795, down 0.1% in early trading. The euro was little changed at $1.1720 on Wednesday. Brent crude futures gained 10 cents on Wednesday, maintaining their highest levels since June 23.
Sources: [1], [2], [3], [4]
- In the context of the fluctuating exchange rates from March to July 2025, investors may find the index of US dollar (USD) against the Pakistani rupee (PKR) a valuable addition to their trading options, considering the stronger USD globally and the depreciation of the PKR.
- The energy sector, particularly the rise in oil prices, plays a significant role in the Pakistani industry, as a net importer of oil, thereby increasing its import costs and putting downward pressure on the PKR against the USD.
- Finance experts and investors might keep a close eye on the US trade policies and oil price trends, as they have potential implications for the PKR, with stricter US trade policies or higher oil prices typically strengthening the USD relative to the PKR.
