Karachi: The Pakistani Rupee (PKR) saw a minor depreciation against the US Dollar (USD) on July 04, 2025, with the interbank closing rate hitting 283.97 PKR per USD, a 0.04% decrease from 283.86 PKR the previous day, as reported by the State Bank of Pakistan. In the open market, the USD was listed at 284.20 PKR for buying and 286.40 PKR for selling, indicating a slight uptick in demand.
Impact on Trade and Economy
This small shift in the USD rate carries weight for Pakistan’s economy. A weaker PKR raises the cost of imports like machinery, fuel, and consumer goods, which could fuel inflation and increase living expenses. On the positive side, exports may gain an edge as Pakistani products become more affordable abroad, benefiting industries such as textiles and agriculture. The exchange rate also affects foreign debt repayment, with a depreciating PKR adding to the cost of dollar-based loans. Businesses and investors watch these changes closely, as they influence trade balances, investment flows, and economic stability.
Market Observations
The open market’s slight premium over the interbank rate hints at ongoing pressure on the PKR, possibly driven by seasonal demand or speculative activity. Experts point to remittances, foreign reserves, and global oil prices as key factors that will shape future exchange rate movements.
About the Currencies
The US Dollar (USD) is the world’s leading reserve currency, widely utilized in global trade and finance, underpinned by the economic might of the United States. The Pakistani Rupee (PKR), introduced in 1948, is Pakistan’s official currency, reflecting the nation’s economic policies and regional trade dynamics.
 saw a minor depreciation against the US Dollar (USD) on July 04, 2025 in interband and open market){kind=link}