The Pakistani rupee continued to strengthen against the US dollar, closing at 279.90 in the interbank market as improved dollar supply supported the local currency. Moreover, the greenback briefly slipped to 279.66 during trading before rising slightly because of fresh import demand later in the session. This steady performance shows that market balance is improving after weeks of pressure. As a result, traders remained cautiously optimistic about near term stability.
In the open market, the rupee also posted gains, finishing at 281.18 per dollar, which marked a 14 paisa improvement over the last two trading days. Furthermore, currency dealers reported smoother dollar flows and reduced panic buying, helping the exchange rate hold firm. These developments suggest that retail demand is slowly aligning with available supply. Therefore, the local unit showed more resilience compared to recent weeks.
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One key factor behind this rise was strong foreign inflows through Roshan Digital Accounts, which brought in 213 million dollars during December alone. In addition, total inflows under this scheme have now reached about 1.17 billion dollars, giving the market extra liquidity. The country also received around 450 million dollars in foreign loans during the current fiscal year. Together, these funds have eased pressure on the rupee.
Economic cooperation has also played an important role, as joint projects with Chinese firms in food processing, renewable energy, technology, and livestock have boosted investor confidence. Moreover, defense procurement agreements with 13 countries and loans of 603 million dollars from the Islamic Development Bank have strengthened foreign exchange reserves. These deals signal growing international engagement with Pakistan’s economy. As a result, the rupee has gained support from multiple financial channels.
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Global trends have further helped the currency, as rising trade tensions among major economies have encouraged a gradual shift away from the US dollar in global markets. Consequently, many investors are spreading their holdings across other currencies, reducing dollar demand worldwide. This broader de dollarization trend has influenced Pakistan’s forex market as well. Therefore, the rupee has benefited from changes beyond domestic factors.
Despite the positive momentum, experts warn that import demand and global uncertainty could still cause short term swings in the exchange rate. However, improved supply, steady inflows, and better investor sentiment are expected to keep the rupee relatively stable. If these trends continue, further gains cannot be ruled out. For now, the currency is enjoying a period of renewed strength.