Remittance time as Pakistani rupee hits 19-month low against US Dollar

Dubai: The Pakistani rupee (PKR) continued its downward trajectory, hitting a 19-month low in the interbank market against the US dollar on Monday.

At the close of trading, the currency settled at PKR 284.22 per USD, marking a depreciation of 25 paisas compared to the previous session. Exchange rate also falls to Rs77.68 against one Dirham, promoting more Pakistanis in the UAE remit money back home.

“We have seen surge in remittances to Pakistan since last night due to better conversion rate” said a marketing manager at a leading money exchange company in Dubai.

A good time for remittances

The weakening of the Pakistani rupee presents an opportunity for overseas Pakistanis to send money home. With the exchange rate now more favourable, each dollar, euro, or dirham remitted will convert into more rupees, boosting the value received by recipients in Pakistan.

For families relying on remittances or for those planning investments or property purchases in Pakistan, the current currency environment offers a potentially advantageous window.

Trend

The decline follows a weakening trend observed over the past week, during which the rupee lost 0.09% on a weekly basis. On Friday, the rupee closed at 283.97 per dollar. The last time the rupee traded around the 284 level was in December 2023, underscoring the growing pressure on the currency.

Currency market analysts attribute the rupee’s continued slide to increasing import demand, widening trade deficits, and a relatively stronger US dollar in global markets. Many experts now project the rupee could fall past the 290 mark during the fiscal year 2025-26 if macroeconomic pressures persist, according to Business Recorder.

In the open market, the PKR also lost ground:

Against the US dollar: PKR fell by 9 paisas for buying and 24 paisas for selling, closing at 285.50 and 286.64, respectively.

Against the Euro: Interestingly, the rupee gained 40 paisas for buying and 56 paisas for selling, settling at 335.29 and 337.64.

Against the UAE Dirham: The rupee closes at 77.68 for buying and 78.10 for selling.

Against the Saudi Riyal: The rates hold steady at 75.98 and 76.40 for buying and selling, respectively.

Though, it’s good time to remit money back home, market watchers urge caution, noting that further depreciation may occur, especially if external financing challenges and import-related pressures continue.