Despite a string of positive developments, the Pakistani Rupee struggled to hold its ground against the US Dollar on Monday, with the greenback gaining further strength in both the interbank and open currency markets.

According to market sources, expectations of increased remittances, steady growth in exports, and the issuance of $1.4 billion worth of bonds in the international market had initially fueled optimism. However, these positive sentiments couldn't hold back the dollar's advance.

In the interbank market, the dollar briefly dipped by 10 paisas, touching Rs280.06, driven by strong market sentiment. But the gains proved short-lived. Global research firms' forecasts predicting a sharp rise in the dollar’s value by mid-next year, combined with growing import-driven demand in the economy, pushed the dollar up once again. By the close of trading, the interbank rate for the dollar settled at Rs281.06, reflecting an increase of 9 paisas from the previous session.

The open market told a similar story. A surge in demand for dollars — fueled by Umrah pilgrims, students paying foreign university fees, and an uptick in tourism-related spending — caused the greenback to appreciate by 7 paisas, closing at Rs282.78.

Market analysts noted that despite encouraging signals on the external front, persistent pressures on the local economy, particularly the rising import demand, are keeping the rupee under strain. Predictions of further dollar strength in the global market are also weighing heavily on sentiment.

While Pakistan’s economy shows signs of resilience, experts warn that without a sustained improvement in foreign exchange inflows and a reduction in the demand for imported goods, the rupee may continue to face downward pressure in the coming months.