Karachi: The Pakistani rupee (PKR) edged down by 8.76 paisa, or 0.03%, against the US dollar in Monday’s interbank trading session, closing at PKR 277.79 per USD, compared to the previous close of PKR 277.70. During the day, the rupee experienced an intraday high of 277.90 and a low of 277.80.
In the open market, exchange companies quoted the dollar at PKR 276.80 for buying and PKR 278.63 for selling.
Market sentiment remains cautious as investors await the State Bank of Pakistan’s (SBP) monetary policy review, scheduled for later in the day. The central bank is widely expected to announce another cut to its key interest rate to support the economy, which has shown signs of fragility amid easing inflation. The SBP has reduced its benchmark policy rate three times since June, dropping it from a record-high 22% to the current 17.5%, with a 200 basis point cut in the latest September meeting.
The rupee also lost ground against other major currencies. It weakened by 84.52 paisa, or 0.28%, against the Euro, closing at 302.64 compared to the previous 301.79. Against the British Pound, the rupee depreciated by 2.25 rupees, or 0.63%, reaching 360.30 from 358.05. Similarly, it dropped by 1.54 rupees, or 0.48%, against the Swiss franc, closing at 321.20, and by 0.74 paisa, or 0.41%, against the Japanese Yen to 1.8269 from 1.8195.
Against the Chinese Yuan, the rupee fell by 16.04 paisa, or 0.41%, to close at 39.14. It also slightly declined against Gulf currencies, weakening by 2.14 paisa or 0.03% against the Saudi Riyal to 73.96 and by 2.38 paisa or 0.03% against the UAE Dirham to close at 75.63.
Despite Monday’s declines, the rupee has appreciated by 55.36 paisa, or 0.20%, against the US dollar during the current fiscal year, and by 4.07 rupees, or 1.47%, so far this calendar year.
In the money market, the benchmark 6-Month Karachi Interbank Offered Rate (KIBOR) saw a slight dip, with bid and offer rates falling by 10 basis points to 13.08% and 13.33%, respectively. Market observers will closely monitor the SBP’s interest rate decision, as it may have further implications for the rupee and the broader economy.
