Pakistani Rupee Hits 20-Month High Against Dollar
News Desk
Islamabad: The Pakistani rupee strengthened to its highest level in nearly 20 months on Monday, gaining further ground against both the US dollar and the UAE dirham amid improving foreign exchange reserves and continued financial backing from international lenders.
According to market data, the rupee traded below 278 against the US dollar and around 75.5 against the UAE dirham, reflecting growing stability in Pakistan’s currency market after years of sharp volatility.
Currency tracking platform xe.com showed that the rupee has appreciated by more than three percent over the past 10 months, supported by rising foreign exchange reserves and sustained support from the International Monetary Fund and Saudi Arabia.
Pakistan’s total liquid foreign reserves have also shown steady improvement, climbing from $14.75 billion in April 2025 to $22.59 billion this month, according to official figures.
Data released by the State Bank of Pakistan showed that the Real Effective Exchange Rate (REER) appreciated to 105.8 in April 2026, compared to 104.3 recorded in March, indicating strengthening external competitiveness and currency stability.
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However, the country’s current account balance posted a deficit of $324 million in April 2026, reversing from a surplus of $1.134 billion recorded a month earlier.
Earlier this month, the IMF approved a $1.32 billion disbursement to Pakistan under the third review of its $7 billion Extended Fund Facility programme, further easing pressure on the country’s external financing position.
The rupee has remained comparatively stable over the past year after suffering severe depreciation during the economic crisis of 2023, when the currency crossed the 300 mark against the dollar amid political uncertainty, declining reserves, and fears of sovereign default.
Economic analysts say the recent stability is largely linked to Pakistan’s ongoing IMF-backed reforms, including fiscal tightening, energy price adjustments, and a more market-driven exchange rate system.
They also noted that the State Bank’s policy of maintaining high interest rates has helped control inflationary pressure, supported investor confidence, and discouraged excessive dollar buying in local markets.
Despite the recent gains, analysts cautioned that risks remain. Any delays in IMF funding, renewed spikes in international oil prices, or worsening political and security conditions could once again place pressure on the rupee in coming months. The article was published on Geo News Website.
