Pakistani rupee strengthens to nearly 20-month high against UAE dirham, US dollar

The Pakistani rupee has appreciated to its strongest level in nearly 20 months, gaining ground against both the US dollar and the UAE dirham in recent trading sessions. The recovery marks a notable shift in currency sentiment after prolonged pressure on Pakistan’s foreign exchange market in previous years.

Market data indicates that the rupee has strengthened to around the mid-270s against the US dollar and improved correspondingly against the UAE dirham, which is pegged to the dollar. The gains reflect continued stability in the currency market and a gradual easing of external payment pressures.

Analysts attribute the appreciation to improved foreign exchange inflows, tighter regulatory measures against informal currency trading, and steady remittance support from overseas Pakistanis. Additionally, ongoing macroeconomic adjustments and engagement with international financial institutions have helped improve investor confidence.

Despite the recent gains, economists caution that the rupee’s trajectory will depend on sustained external financing, export performance, and the country’s ability to maintain foreign reserves. Any disruption in inflows or external shocks could once again put pressure on the currency.

Overall, the rupee’s rise to a near 20-month high signals short-term stability and improved sentiment, though long-term sustainability remains closely tied to broader economic reforms and external account management.