The rupee weakened against the US dollar on Tuesday, reaching its lowest level in 19 months.
The trading day started calmly, with the rupee holding steady at Rs284.22 in the inter-bank market. However, by midday, it slipped by 18 paisas to close at Rs284.40.
In the open market, the dollar also rose by 20 paisas to Rs286.85, further pressuring the rupee. This marks the local currency’s weakest point since late 2023.
Analysts say the fall is due to steady demand for dollars. Import payments and the central bank’s dollar purchases are driving this trend.
A currency dealer noted that the State Bank of Pakistan (SBP) is building foreign reserves, adding pressure on the rupee. He warned that without strong foreign inflows, the decline may continue.
Global news added to the uncertainty. Former US President Donald Trump announced new tariffs on Japanese and South Korean goods. This triggered volatility in global currency markets and supported the US dollar.
Meanwhile, oil prices — important for import-reliant countries like Pakistan — also eased slightly. Brent crude dropped to $69.37 per barrel, while US crude fell to $67.69.
Experts say a rise in OPEC+ production caused the fall in oil prices. Lower oil costs may offer some relief to Pakistan’s trade balance.
Still, with rising global tensions and strong dollar demand, the rupee may stay under pressure in the short term.
Punjab’s major multi-billion-rupee road infrastructure projects are now nearing completion. These developments aim to boost regional connectivity and economic growth.
