Pakistani Rupee Slides to 280 Against US Dollar, Trails Asian Peers

Delhi. February 16, 2026 — The Pakistani Rupee (PKR) has depreciated to around 280 against the US Dollar (USD) in the interbank market, reflecting continued stress on Pakistan’s external account and foreign exchange reserves. The decline comes amid persistent dollar demand for imports and debt servicing, limited inflows, and broader global dollar strength. The situation has increased pressure on the State Bank of Pakistan to manage currency volatility while balancing inflationary risks.

Compared with other Asian currencies, the rupee’s weakness appears more pronounced. The Indian Rupee (INR) remains relatively stable despite gradual depreciation, supported by stronger foreign exchange reserves and diversified capital inflows. The Chinese Yuan (CNY) continues to trade within a managed band backed by policy support and export strength, while the Japanese Yen (JPY), though weaker in recent months, benefits from deep financial markets and strong institutional credibility. Meanwhile, currencies such as the Bangladeshi Taka (BDT) have seen moderate depreciation but remain more stable relative to the Pakistani rupee.

A weaker rupee raises the cost of imports—particularly fuel, machinery, and essential commodities—thereby contributing to inflationary pressures and increasing the local currency burden of foreign debt repayments. While exports and remittances may see short-term gains in rupee terms, economists emphasize that sustained currency stability will depend on fiscal consolidation, improved export competitiveness, enhanced foreign exchange reserves, and structural economic reforms.