In Monday’s interbank session, the Pakistani rupee (PKR) experienced a modest decline against the US dollar, slipping by 12.36 paisa or 0.04%, with the exchange rate settling at PKR 277.86 per USD. This marks a slight decrease from the previous close of PKR 277.74. Throughout the session, the PKR showed fluctuations, reaching an intraday high (bid) of 277.90 and a low (ask) of 277.80.
Open Market Trends
In the open market, exchange companies quoted the dollar at 276.83 for buying and 278.74 for selling, reflecting a slightly wider range than the interbank rate. The minor discrepancies between interbank and open market rates often represent a reaction to demand from retail traders and other sectors, which can add pressure to the PKR’s standing against the dollar.
Performance Against Major Currencies
Despite its mild depreciation against the US dollar, the PKR gained ground against several major currencies:
- Euro: PKR appreciated by 1.92 rupees (0.64%), closing at 297.02 compared to the previous rate of 298.94.
- British Pound: The currency strengthened by 1.29 rupees (0.36%), ending at 358.26, down from 359.55.
- Swiss Franc: PKR rose by 1.45 rupees (0.46%), closing at 316.45.
- Japanese Yen: The currency gained 1.24 paisa (0.68%) to close at 1.8076, compared to 1.8200 previously.
- Chinese Yuan: PKR appreciated by 12.72 paisa (0.33%), reaching 38.66 from the previous 38.79.
However, against certain Middle Eastern currencies, the PKR showed mild depreciation:
- Saudi Riyal: PKR weakened by 3.68 paisa (0.05%), closing at 73.98.
- U.A.E Dirham: The currency also dropped 3.47 paisa (0.05%), settling at 75.65.
PKR’s Year-to-Date Performance
Since the beginning of the current fiscal year, the PKR has strengthened by 48.02 paisa (0.17%) against the US dollar. On a calendar-year basis, the rupee has appreciated by 4.00 rupees (1.44%) against the greenback, reflecting an overall improving trend that is partly due to tighter currency controls and policy adjustments from the State Bank of Pakistan.
Money Market Movement
In the money market, the Karachi Interbank Bid and Offer rates for the benchmark six-month tenor increased slightly. The bid rate climbed by 4 basis points to 13.09%, while the offer rate rose to 13.34%. This uptick may reflect market anticipation of further adjustments in monetary policy, especially as global interest rates and inflation continue to fluctuate.
Outlook
The PKR’s performance suggests resilience against major global currencies, with gains that could benefit trade balances and reduce import costs. However, the slight dip against the USD highlights ongoing pressure on the rupee due to external factors, including demand for foreign exchange in the import sector. Analysts suggest that the PKR may stabilize if remittance flows remain steady and if the central bank maintains its current monetary policy trajectory.
