The Pakistani Rupee (PKR) appreciated by 19.99 paisa (0.07%) against the US Dollar in Friday’s interbank session, closing at PKR 277.76/USD, compared to PKR 277.96/USD on Thursday.
Key Highlights
- Intraday Range:
- Bid High: PKR 278.05
- Ask Low: PKR 277.95
- Weekly Performance: PKR declined 9 paisa against the USD over the week.
- Open Market Rates:
- Buying: PKR 276.60
- Selling: PKR 279.00
Performance Against Other Currencies
The PKR appreciated against most major currencies:
- Euro: Gained 1.54 rupees (0.53%), closing at PKR 291.36.
- British Pound: Rose 2.04 rupees (0.58%), settling at PKR 349.37.
- Swiss Franc: Strengthened by 1.19 rupees (0.38%), to PKR 313.57.
- Japanese Yen: Marginal gain of 0.19 paisa (0.11%), closing at PKR 1.7940.
- Chinese Yuan: Appreciated by 6.60 paisa (0.17%), to PKR 38.33.
- Saudi Riyal: Gained 6.22 paisa (0.08%), to PKR 73.98.
- UAE Dirham: Strengthened by 5.44 paisa (0.07%), closing at PKR 75.62.
Cumulative Performance for FY25 and 2024
- FY25 (July – November): PKR appreciated 58.21 paisa (0.21%) against the USD.
- Calendar Year 2024: Gained 4.10 rupees (1.48%) so far.
Money Market Update
- Karachi Interbank Bid and Offer Rates (KIBOR):
- 6-Month KIBOR: Declined by 2bps, with bid and offer rates at 13.38% and 13.63%, respectively.
- State Bank of Pakistan (SBP) Interventions:
- Conducted reverse repo and Shariah-compliant Modarabah-based Open Market Operations (OMO).
- Injected Rs. 2.38 trillion into the money market, ensuring ample liquidity for financial institutions.
Factors Driving PKR Appreciation
- Improved Foreign Exchange Reserves:
Pakistan’s foreign reserves remain steady, supported by increased remittances and export growth. - Reduced Import Pressure:
Eased import volumes amid stable energy prices have reduced demand for foreign exchange. - Policy Support:
The SBP’s interventions in the interbank market and liquidity injections have stabilized the currency. - Global Currency Trends:
USD strength has moderated slightly as global economic data shows mixed signals, providing room for PKR gains.
Outlook
The PKR is expected to remain relatively stable in the near term, supported by:
- Continued remittance inflows and export growth.
- Effective monetary and fiscal interventions by the SBP and government.
However, risks such as geopolitical tensions, rising global interest rates, and inflationary pressures could influence currency volatility. The PKR’s performance will depend on maintaining macroeconomic stability and sustaining reforms.
