Pakistan currency markets: Rupee remains weak against dollar as Dirham holds steady

The Pakistani rupee continues to face significant volatility against major currencies. In mid-August 2026, the interbank exchange rate for the US dollar remained high, trading near Rs278. This persists despite 2022 predictions by Finance Minister Ishaq Dar, who suggested the rupee was undervalued and could see the dollar drop below Rs200.

Regarding the UAE Dirham, the exchange rate remained relatively steady during the week of August 10–15, 2026. Interbank rates fluctuated between approximately 75.59 and 75.63 PKR per AED. Open-market rates were slightly higher, with selling prices reaching around 77.15 PKR. Because the Dirham is pegged to the US dollar, its value in Pakistan closely tracks USD/PKR trends. The UAE Dirham remains a highly active currency in Pakistan due to high demand for remittances, travel, and investment from the large Pakistani community living in the Emirates.