The Pakistani rupee (PKR) continued its recent trend of stabilization, appreciating slightly by 8.33 paisa (0.03%) against the US dollar in Thursday’s interbank trading session. The currency closed at PKR 277.96 per USD, improving from the previous day’s value of 278.04.
Interbank Performance Highlights
- Intraday Range:
- High (Bid): 278.10
- Low (Ask): 278.00
This marginal gain underscores the local currency’s steady recovery amidst improving macroeconomic conditions and consistent market interventions by the central bank.
Open Market Dynamics
In the open market, the dollar was quoted at:
- Buying: PKR 276.60
- Selling: PKR 279.10
The narrow spread in rates reflects balanced demand and supply dynamics, with exchange companies reporting subdued volatility.
PKR Performance Against Other Major Currencies
- Euro
- Appreciation of 1.06 rupees (0.36%).
- Closed at PKR 292.90, improving from PKR 293.96.
- British Pound
- Gained 1.51 rupees (0.43%).
- Closed at PKR 351.41, down from PKR 352.92.
- Swiss Franc
- Depreciated by 42.19 paisa (0.13%).
- Closed at PKR 314.75, compared to PKR 314.33.
- Japanese Yen
- Lost 1.01 paisa (0.57%).
- Closed at PKR 1.7959, compared to PKR 1.7858.
- Chinese Yuan
- Fell marginally by 0.20 paisa (0.01%).
- Closed at PKR 38.40, compared to PKR 38.39.
- Saudi Riyal
- Rose by 1.92 paisa (0.03%).
- Closed at PKR 74.04, up from PKR 74.02.
- UAE Dirham
- Gained 2.27 paisa (0.03%).
- Closed at PKR 75.68, improving from PKR 75.66.
Year-to-Date Performance of PKR
- Against the US Dollar:
- Fiscal Year (FY25): Gained 38.22 paisa (0.14%).
- Calendar Year (CY24): Up by 3.90 rupees (1.40%).
These gains reflect the impact of a stable external account, prudent fiscal measures, and effective monetary policy adjustments.
Money Market Update
In the money market, the 6-Month Karachi Interbank Bid and Offer Rates (KIBOR) edged up slightly:
- Bid Rate: Increased by 1 basis point to 13.40%.
- Offer Rate: Rose by 1 basis point to 13.65%.
This uptick signals a cautious liquidity stance amidst evolving economic indicators.
Outlook for the PKR
The PKR’s continued stability is bolstered by:
- Improving Macroeconomic Indicators: Declining inflation, a current account surplus, and enhanced export performance.
- Government Policies: Measures aimed at stabilizing the currency and promoting remittance inflows.
- Market Confidence: Investors’ growing confidence in Pakistan’s economic recovery.
While external factors like global interest rate trends and geopolitical risks could affect the rupee’s trajectory, the current environment suggests further strengthening in the near term.
