Business Desk 
Apr 12, 2026
The Pakistani rupee is expected to trade within a narrow range against the US dollar in the coming sessions, supported by improving market sentiment, steady inflows and policy-driven stability measures, according to a report.
In the interbank market, the rupee showed slight firmness during the week, closing at 279.07 per dollar on Monday and marginally improving to 279.01 by Friday.
Analysts attribute this stability to a combination of strong remittances and expectations of fresh inflows following progress in talks with the International Monetary Fund (IMF). Record remittances of $3.83 billion in March have provided a key buffer for the currency, helping maintain balance in the foreign exchange market.
A client note by Tresmark highlighted that earlier concerns over a sharp devaluation, linked to geopolitical tensions and upcoming external repayments, have subsided. “The earlier market noise around a sharp devaluation… appears to have died down,” the report noted, adding that the rupee has traded “slightly firm” in recent sessions.
The report also pointed to a shift in how the currency is being managed, suggesting it has become more of a policy variable than a purely market-driven indicator. Instead of aggressive dollar selling, authorities are increasingly relying on demand management and administrative measures to control volatility.
Despite the relatively stable outlook, external obligations, particularly repayments linked to the UAE, continue to pose challenges in terms of foreign exchange reserves. However, overall sentiment in the interbank market remains steady, aided by interest rate flexibility and improved liquidity conditions.
Pakistan’s foreign exchange reserves have also shown modest improvement, with State Bank reserves rising to $16.4 billion during the week ended April 3, while total liquid reserves reached $21.895 billion.
Analysts expect these factors to keep the rupee broadly stable in the near term, with limited volatility barring any major external shocks.
