Dollar Strengthens in Interbank Market Amid Regional Tensions
Karachi – The Pakistani rupee continued to weaken against the US dollar on Wednesday due to mounting geopolitical tensions between Pakistan and India, disrupted air traffic, and reduced dollar inflows from foreign currency sources.
In the interbank market, the rupee briefly gained strength during intraday trading as the dollar dropped by 9 paisas, reaching Rs. 281.28. However, the dip was short-lived due to strong import demand and limited dollar supply.
By the close of the trading session, the dollar had regained momentum, rising by 10 paisas to settle at Rs. 281.47 in the interbank market.
In the open market, the dollar also saw slight upward movement, increasing by 1 paisa to close at Rs. 283.13, as demand remained steady.
Why the Dollar Is Gaining:
Currency analysts attribute the ongoing pressure on the rupee to several key factors:
- Heightened military tensions between Pakistan and India
- Flight disruptions affecting cross-border trade and remittances
- Reduced forex inflows, especially from informal sources
- Increased demand for foreign exchange to cover non-traditional import needs
“If cross-border tensions persist, Pakistan may require more foreign exchange not just for standard imports, but also for essential non-traditional sectors,” said a senior currency market expert.
Experts warn that continued regional instability may put further downward pressure on the rupee, especially if foreign inflows do not stabilize. Traders and importers are advised to closely monitor market movements and hedge accordingly.
