Karachi (nytoday): The Pakistani rupee continued its upward momentum against the US dollar on Wednesday, gaining strength in both the interbank and open currency markets. The appreciation was driven by multiple positive economic developments, including rising foreign inflows and improved market sentiment.
According to details, the rupee remained firm due to an inflow of $213 million into the Roshan Digital Account in December, taking total inflows to $11.7 billion. Additionally, Pakistan received $4.5 billion in foreign loans during the fiscal year 2026, alongside growing joint ventures between Pakistani and Chinese companies, which further supported the local currency.
Market analysts noted that global factors also played a key role. Ongoing tensions involving the US, China, and Iran, along with tariff disputes between the US and European Union countries and the growing trend of de-dollarisation, led to fluctuations and weakness in the dollar throughout the trading session.
During interbank trading, the dollar at one point fell by 25 paisa to Rs 279.66. However, as dollar supply improved and demand rose to meet import requirements, the greenback closed slightly higher at Rs 279.90, still reflecting a net gain for the rupee.
In the open currency market, the dollar also weakened after a two-day break, closing at Rs 281.18, down by 14 paisa. Experts attributed this trend to several encouraging developments, including multi-million-dollar agreements for joint agricultural ventures in food processing, renewable energy technology, and livestock sectors.
Further boosting confidence were the signing of three financing agreements worth $603 million with the Islamic Development Bank, as well as interest from 13 different countries in purchasing defence products from Pakistan. These factors collectively strengthened foreign exchange reserves and positively influenced the currency markets.
FAQs
1. Why is the Pakistani rupee strengthening against the dollar?
The rupee is gaining due to higher foreign inflows, improved investor confidence, foreign loans, joint ventures, and global dollar weakness.
2. What role did Roshan Digital Account inflows play?
In December alone, $213 million flowed into Roshan Digital Accounts, raising total inflows to $11.7 billion and supporting the rupee.
3. How did global factors affect the dollar’s value?
Geopolitical tensions, trade disputes, and de-dollarisation trends weakened the dollar, contributing to the rupee’s appreciation.