Karachi, Pakistan – The Pakistani rupee (PKR) experienced a slight depreciation against the US dollar during Wednesday’s interbank trading session. The currency fell by 8.29 paisa, closing at PKR 278.47 per USD, compared to the previous day’s closing of PKR 278.39 per USD.
Interbank Market Performance
Throughout the session, the rupee fluctuated, hitting an intraday high (bid) of 278.7 and a low (ask) of 278.5. This slight drop continues the rupee’s challenging performance amid ongoing economic pressures.
Open Market Rates
In the open market, exchange companies quoted the dollar at PKR 277.25 for buying and PKR 280.00 for selling. This spread reflects the varying demand and supply dynamics outside the formal banking sector.
Comparative Performance Against Major Currencies
The rupee displayed a mixed performance against other major currencies:
- Euro (EUR): PKR gained 16.05 paisa, closing at PKR 302.31 compared to the previous rate of PKR 302.47.
- British Pound (GBP): The pound increased by 94.09 paisa, closing at PKR 354.89 from PKR 353.95.
- Swiss Franc (CHF): The franc saw a decline, with PKR gaining 81.37 paisa to close at PKR 305.04, down from PKR 305.86.
- Japanese Yen (JPY): PKR improved slightly by 0.18 paisa, closing at PKR 1.7802 versus the previous close of PKR 1.782.
- Chinese Yuan (CNY): The rupee appreciated by 0.56 paisa, closing at PKR 38.46, unchanged from the previous session.
- Saudi Riyal (SAR): Gained 1.81 paisa, closing at PKR 74.25 compared to PKR 74.23.
- U.A.E Dirham (AED): Increased by 2.36 paisa, closing at PKR 75.79 compared to the previous rate of PKR 75.82.
Year-to-Date Performance
Despite the recent fluctuations, the PKR has appreciated against the US dollar by 7.52 rupees or 2.7% during the current financial year. Over the current calendar year, the rupee has seen a gain of 3.39 rupees or 1.22%.
Money Market Stability
In the money market, the benchmark 6-month Karachi Interbank Bid and Offer Rates (KIBOR) remained steady at 21.01% and 21.26%, respectively. This stability indicates a maintained level of confidence in short-term borrowing rates despite the currency fluctuations.
Economic Context and Outlook
The slight depreciation of the PKR against the USD reflects ongoing economic challenges, including inflationary pressures and trade deficits. However, the rupee’s mixed performance against other major currencies suggests a complex interplay of global economic factors, such as fluctuating demand and supply in international markets and the economic policies of major trading partners.
The appreciation of the rupee against the dollar over the financial and calendar year showcases some underlying resilience in the currency, likely bolstered by remittances, exports, and governmental measures to stabilize the economy.
