The Pakistani Rupee (PKR) experienced a slight deterioration against the US Dollar in Thursday’s interbank session, slipping by 5.77 paisa, or 0.02%, to close at PKR 277.85 per USD, down from Wednesday’s rate of PKR 277.79. Throughout the day, PKR showed an intraday high of 277.90 and a low of 277.80 against the dollar, indicating narrow trading activity.
This depreciation follows recent efforts by Pakistan’s government to adjust financial conditions. In an auction held on Wednesday, the government cut rates on treasury bills by up to 140 basis points—a move that came just before the anticipated monetary policy announcement. The adjustment in treasury bill rates is expected to influence short-term liquidity and borrowing rates, potentially impacting the rupee’s performance in the coming weeks.
PKR’s Mixed Performance Against Major Global Currencies
The rupee also showed varied performance against other major currencies, highlighting global economic pressures and exchange rate dynamics:
- Euro: PKR fell by 96.55 paisa, or 0.32%, against the Euro, closing at 301.69 compared to the previous value of 300.72.
- British Pound: PKR appreciated by 31.39 paisa, or 0.09%, to close at 361.02, strengthening slightly from Wednesday’s rate of 361.34.
- Swiss Franc: PKR depreciated by 88.10 paisa, or 0.28%, to close at 321.12.
- Japanese Yen: PKR weakened by 1.34 paisa, or 0.74%, to settle at 1.8260, reflecting increased volatility in the currency pair.
- Chinese Yuan: PKR decreased by 3.68 paisa, or 0.09%, to close at 39.03, compared to the previous session’s rate of 38.99.
- Saudi Riyal: The rupee weakened slightly by 1.34 paisa, or 0.02%, ending the session at 73.98.
- UAE Dirham: PKR declined by 1.57 paisa, or 0.02%, closing at 75.65.
These fluctuations mirror global economic conditions and local adjustments as Pakistan’s financial authorities navigate the evolving landscape of international trade and fiscal policy.
PKR’s Performance Over the Fiscal Year and Calendar Year
Despite the slight daily decline against the USD, PKR has gained some ground over the fiscal year. It appreciated by 49.12 paisa, or 0.18%, against the US dollar in this period and has seen a 1.44% gain of 4.01 rupees since the beginning of the calendar year. These longer-term trends indicate some resilience, as Pakistan’s currency navigates inflationary pressures and shifting interest rate expectations.
Money Market Rates: Karachi Interbank Rates Fall
In the money market, Pakistan’s benchmark 6-month Karachi Interbank Bid and Offer Rates (KIBOR) fell by 32 basis points, with bid and offer rates settling at 13.31% and 13.56%, respectively. This drop reflects ongoing efforts by financial regulators to adjust liquidity conditions, a shift that may continue to influence PKR’s performance in both local and global markets.
As Pakistan awaits the forthcoming monetary policy decision, further changes in interest rates could play a pivotal role in shaping PKR’s trajectory in the weeks ahead.
