On June 4, 2025, the Pakistani rupee experienced a slight depreciation against the US dollar, closing at PKR 282.22 in the inter-bank market—a decrease of Re0.10 or 0.03% from the previous day’s rate of PKR 282.12 . This marginal decline reflects ongoing economic challenges both domestically and internationally.brecorder.com+8brecorder.com+8brecorder.com+8
Factors Influencing the Rupee’s Performance
- Global Economic Dynamics: The US dollar has shown strength in recent days, buoyed by unexpected increases in US job openings and anticipation of further labor market data, including the upcoming non-farm payrolls report. This dollar strength has exerted pressure on emerging market currencies, including the Pakistani rupee .reuters.com
- Regional Currency Trends: The Indian rupee, for instance, declined by 0.3% against the US dollar, influenced by investor withdrawal from equities and a general risk-off sentiment in the market . Such regional currency movements can have a cascading effect, impacting neighboring economies like Pakistan.reuters.com
- Investor Sentiment and FII Outflows: Foreign Institutional Investors (FIIs) have been pulling out funds from emerging markets, including Pakistan, due to global economic uncertainties. This capital flight contributes to the weakening of local currencies.
Outlook and Projections
Analysts at Fitch Ratings have projected that the Pakistani rupee may depreciate further, potentially reaching PKR 285 against the US dollar by the end of June 2025, and possibly sliding to PKR 295 by the end of the next fiscal year in 2026 . This forecast is based on ongoing economic challenges and the need for structural reforms.bloompakistan.com+2brecorder.com+2propakistani.pk+2