KARACHI: After three years, the US dollar slipped below Rs279 on Friday in the inter-bank market, reflecting a sign of exchange rate stability.

According to data issued by the Exchange Companies Association of Pakistan, the buying rate in the inter-bank market on Friday was Rs278.95, against Rs279 a day earlier.

The US dollar was traded between Rs277-278 in March 2023 in the interbank market. However, before this appreciation of the rupee, the country was on the verge of default but recovered after the IMF programme and support from China.

Atif Ahmed, a currency dealer, said that since Jan 16, the rupee had kept appreciating against the dollar and had reached this level. “For more than a year, currency dealers have not been working on ready transactions but have been doing swaps only, as the State Bank has strict rules for dollar trading,” he added.

The stable exchange rate played a key role in the stabilisation of the economy despite poor growth and very high inflation during this period.

Inflation has come down to as low as three per cent, but the interest rate has remained at 10.5pc.

The US dollar had reached an all-time peak of over Rs307 in September 2023, but support from the IMF and China, as well as a crackdown on currency smuggling and other illegal channels causing outflows, paid dividends. “The Pakistani rupee is gaining five paisas after three days and 10 paisas a week. This trend has persisted for a long period and could continue for a longer period due to expected high inflows,” he said.

Published in Dawn, April 18th, 2026