Pakistani rupee strengthens further against US dollar in interbank and open market

ISLAMABAD (Dunya News) – The Pakistani rupee continued its upward trend against the US dollar on Wednesday, showing strength in both the interbank and open currency markets.

In the interbank market, the rupee closed at Rs 279.90 per dollar, down 1 paisa from the previous session. At one point, the greenback had dropped to Rs 279.66 due to improved supply, though increased demand for imports pushed it slightly higher by the close.

In the open market, the rupee also strengthened, closing at Rs 281.18 per dollar, marking a 14-paisa decline over the last two days.

Market analysts attributed the rupee’s appreciation to several factors, including foreign inflows of $213 million in December via Roshan Digital Accounts, cumulative inflows reaching $1.17 billion, and foreign loans of $450 million in FY2026.

Additionally, joint ventures between Pakistani and Chinese companies in food processing, renewable energy, technology, and livestock sectors, as well as defense procurement agreements with 13 countries and $603 million in Islamic Development Bank loans, supported the local currency.

Global trends also played a role, as tensions and tariff disputes between the US, Russia, China, Iran, and the European Union have contributed to a de-dollarization trend, influencing forex market dynamics.

Experts say the rupee’s performance reflects improved supply in the market and growing investor confidence, but import demand and global uncertainties continue to create short-term volatility.