The Pakistani rupee (PKR) appreciated by 10 paisa or 0.04% against the US dollar on Thursday, settling at PKR 278.44 in the interbank market, compared to the previous day’s close of PKR 278.54. Throughout the trading day, the currency fluctuated between an intraday high (bid) of 278.60 and a low (ask) of 278.50. In the open market, exchange companies quoted the dollar at 279.46 for buying and 280.85 for selling.
State Bank of Pakistan (SBP) Slashes Interest Rates by 200bps
The SBP announced a significant reduction of 200 basis points (bps) in its key policy rate, bringing it down to 17.5%. This cut was larger than the expected 150bps, marking the third consecutive reduction since June 2024. In total, the SBP has lowered rates by 450bps, responding to easing inflation and aiming to support economic growth.
PKR Movement Against Major Currencies
- Euro: PKR gained 1.04 rupees against the Euro, closing at 306.47 from the previous 307.51.
- British Pound: PKR appreciated by 1.41 rupees, with the Pound closing at 362.94 from 364.35 a day earlier.
- Swiss Franc: PKR strengthened by 3.43 rupees, ending at 325.87 compared to 329.30 in the previous session.
- Japanese Yen: PKR gained 1.82 paisa, closing at 1.9523 from 1.9705.
- Chinese Yuan: The PKR rose by 7.07 paisa, closing at 39.09 compared to 39.16.
- Saudi Riyal: PKR slightly improved by 3.66 paisa, ending at 74.20 from 74.23.
- U.A.E Dirham: PKR appreciated by 2.72 paisa, closing at 75.84 from 75.81.
PKR’s Performance in 2024
During the current financial year, the rupee has depreciated against the US dollar by 10.11 paisa or 0.04%. However, since the start of the calendar year, the PKR has gained 3.42 rupees or 1.23% against the greenback.
Money Market Update
In the money market, the benchmark 6-month Karachi Interbank Bid and Offer rates (KIBOR) dropped by 6 bps, with bid rates at 17.42% and offer rates at 17.67%, reflecting the easing monetary policy.
