KARACHI, Pakistan – On Thursday, July 31, 2025, this review dissects the macroeconomic interplay between the US Dollar (USD) and Pakistani Rupee (PKR) throughout July 2025.
The month concluded with the PKR appreciating to PKR 282.87 per USD, a net gain of PKR 1.35 or 0.47% from its initial value of PKR 284.22 on July 1. This analysis leverages interbank data to evaluate trends, cross-currency effects, and their broader economic ramifications.
Macroeconomic Trend Evaluation
The USD-PKR exchange rate commenced July at PKR 284.22, exhibiting relative stability until a peak of PKR 284.97 on July 17, indicative of a 0.26% PKR depreciation. A reversal materialized post-mid-month, with the PKR strengthening to PKR 283.45 by July 25, further declining to PKR 283.05 on July 29, and stabilizing at PKR 282.95 on July 30 before today’s close. Intraday volatility, evidenced by highs of PKR 285.2 on July 16 and PKR 285.8 on July 30, suggests market responsiveness to domestic policy shifts or external capital flows. This late-month appreciation may signal improved forex reserves or a softening in global USD demand.
DOLLAR RATE TODAY IN PAKISTAN- LIVE
Cross-Currency Impact Analysis
The PKR’s trajectory against the USD influenced its performance across major currencies. The Euro (EUR) saw the PKR weaken from PKR 335.86 on July 7 to PKR 348.85 today, a 3.87% decline, likely driven by Eurozone economic resilience. Conversely, the British Pound (GBP) experienced a PKR appreciation from PKR 387.10 to PKR 377.50, a 2.48% increase, reflecting GBP depreciation pressures. The Swiss Franc (CHF) recorded a PKR drop from PKR 359.11 to PKR 365.30, down 1.72%, while the Japanese Yen (JPY) remained stable, with a marginal PKR rise from 1.9728 to 1.9705. The Chinese Yuan (CNY) saw a PKR decrease from PKR 39.66 to PKR 40.00, a 0.86% fall, potentially tied to trade imbalances. The Saudi Riyal (SAR) and UAE Dirham (AED) posted PKR gains from PKR 75.72 to 76.13 and PKR 77.31 to 77.71, up 0.54% and 0.52%, respectively, aligning with oil price stability.
Economic Consequence Assessment
The USD’s early dominance, with rates exceeding PKR 284, exerted upward pressure on import prices, notably for petroleum and food, amplifying inflationary trends. This eroded consumer purchasing power, elevated business input costs, and diminished remittance value, straining household incomes. The government’s external debt servicing costs also rose, exacerbating fiscal constraints. However, the PKR’s recovery to PKR 282.87 mitigated these effects, reducing import expenditures, stabilizing consumer prices, and enhancing remittance purchasing power. While debt obligations persist, this adjustment offers a temporary fiscal cushion, contingent on sustained policy efficacy.
Market and Policy Outlook
The money market’s 6-month Karachi Interbank Bid and Offer rates, fixed at 10.72% and 10.97%, provided a stable interest rate environment. Year-to-date, the PKR has depreciated by 7.10 rupees or 2.50% against the USD, with a fiscal year decline of 11.79 paisa or 0.04%. The July uptrend suggests potential central bank interventions or improved trade balances, though long-term stability hinges on structural reforms and global commodity price trends.
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