In Wednesday’s interbank session, the Pakistani Rupee (PKR) experienced a minor decrease of 5.44 paisa, equivalent to a 0.02% drop, against the US Dollar (USD), closing at PKR 277.89 per USD compared to the previous closing rate of PKR 277.84. During the trading session, the currency saw an intraday high (bid) of PKR 278.00 and a low (ask) of PKR 277.85.
This decline came as the US Dollar Index (DXY) surged by 1.4%, driven by market reaction to Donald Trump’s election as the 47th president of the United States. The strengthened dollar reflects investor sentiment around Trump’s anticipated economic policies, which are expected to emphasize fiscal spending and influence global currency markets.
PKR Performance Against Major Currencies
While PKR saw a slight decline against the USD, it appreciated notably against several other major currencies:
- Euro (EUR): PKR rose by 3.43 rupees (1.13%) to close at 299.10, compared to the previous value of 302.52.
- British Pound (GBP): The local currency appreciated by 2.01 rupees (0.56%), ending the session at 358.49 versus 360.51 on Tuesday.
- Swiss Franc (CHF): PKR increased by 3.67 rupees (1.14%), reaching 317.95.
- Japanese Yen (JPY): PKR strengthened by 1.99 paisa (1.09%), closing at 1.8041 compared to 1.8240 the previous day.
- Chinese Yuan (CNY): PKR appreciated by 29.14 paisa (0.75%), finishing at 38.81 compared to 39.10 on Tuesday.
On the other hand, PKR weakened slightly against the Saudi Riyal (SAR), declining by 1.25 paisa (0.02%) to 73.98, and against the UAE Dirham (AED) by 1.38 paisa (0.02%) to close at 75.66.
Year-to-Date Performance
Since the start of the fiscal year, PKR has appreciated against the USD by 44.89 paisa (0.16%) and has gained 3.97 rupees (1.43%) since the beginning of the calendar year, reflecting some resilience amid fluctuating international market conditions.
Money Market Overview
In the money market, the 6-Month Karachi Interbank Bid Rate (KIBOR) and Offer Rate remained stable at 13.04% and 13.29%, respectively.
Outlook
The movement in PKR against major currencies highlights the sensitivity of the currency to international market shifts, particularly due to U.S. policy changes that impact global trade and investment flows. As the USD continues to strengthen, PKR’s near-term performance will likely depend on broader economic policies, investor sentiment in regional markets, and any measures by the State Bank of Pakistan to manage currency volatility.
