Dollar Edges Up Against Pakistan’s Rupee Mid Budget Preparations, Rising Oil Prices

Abdullah Hussain (@Abdulla99267510) Published May 14, 2025 | 07:01 PM

Rise in value comes amid preparations for upcoming federal budget, which is reportedly being based on an exchange rate of Rs290, along with growing concerns over country’s rising debt obligations and increasing global crude oil prices

KARACHI: (UrduPoint/UrduPoint / Pakistan Point News-May 14^th, 2025) The Pakistani rupee continued to face pressure on Wednesday as the US Dollar extended its upward trajectory in both interbank and open markets.

The rise in value comes amid preparations for the upcoming Federal budget, which is reportedly being based on an exchange rate of Rs290, along with growing concerns over the country’s rising debt obligations and increasing global crude oil prices.

Despite the receipt of a $1.23 billion tranche from the International Monetary Fund (IMF), which initially created some positive sentiment in the Currency markets, the impact on the rupee remained limited.

During intra-day trading, the dollar briefly declined by 15 paisas, touching Rs281.52 in the interbank market. However, increased import-driven demand for the greenback pushed its value back up in the afternoon session. The dollar eventually closed at Rs281.71, marking a modest gain of 4 paisas.

Meanwhile, the open market also saw a slight appreciation of the dollar, which rose by 3 paisas to settle at Rs283.72.

The currency dealers expected continued fluctuations in the exchange rate as budgetary developments unfold and the global market dynamics continued to influence investor sentiment.