The Pakistani rupee lost further ground against the US dollar on Monday, extending its gradual decline in the inter-bank market. By the end of the trading session, the rupee had slipped by 17 paisa, closing at 283.87 per dollar — a 0.06% drop.
Weekly data from the State Bank of Pakistan confirms the trend: the rupee fell by 0.26% last week, ending at 283.70, compared to 282.96 the week before.
Topline Securities CEO Mohammed Sohail noted that over the past six months, the rupee has weakened not only against the dollar (by 2%) but even more sharply against other major currencies — losing 12% to the euro and 9% to the British pound.
While the currency has shown relative stability compared to the dramatic slides of 2023, it remains under pressure from persistent economic challenges. Analysts point to high inflation, a heavy schedule of external debt payments and fragile foreign exchange reserves as key risks weighing on the rupee.
Short-term figures show mild fluctuations: the rupee moved by about 0.07% daily and fell 0.41% over the past month, hinting at a more controlled market behaviour than in the past. Experts attribute this moderation to IMF-backed economic reforms, which have replaced abrupt devaluations with a more gradual adjustment.
Sohail added that although the rupee remains under strain, the current depreciation appears more aligned with economic fundamentals and less disruptive for investors.
In related market news, the dollar dipped slightly on global markets after US Federal Reserve official Michelle Bowman signalled possible interest rate cuts. Meanwhile, local gold prices moved against the international trend: despite global prices inching up due to Israel-Iran tensions, gold in Pakistan fell by Rs300 per tola, closing at Rs358,165.
