The Pakistani rupee (PKR) remains steady against the US dollar in Tuesday’s interbank session, closing at PKR 278.30 per USD, compared to the previous session’s closing of PKR 278.2957 per USD. The currency experienced an intraday high (bid) of 278.5 and a low (ask) of 278.3.
In the open market, exchange companies quoted the dollar at PKR 277.18 for buying and PKR 279.59 for selling. Despite not registering any gains, the rupee has successfully maintained its stability against the dollar for another month, reflecting stable economic operations.
MONTHLY PERFORMANCE
The rupee concluded May at PKR 278.33 per USD, marking a slight drop of 1 paisa from April’s closing rate of PKR 278.31 per USD. The stability of the rupee has been supported by the successful conclusion of the 9-month Stand-By Arrangement (SBA) with the International Monetary Fund (IMF), which provided a policy anchor and helped eliminate foreign exchange shortages by returning to proper FX market functioning.
INFLATION AND INTEREST RATES
Official data released on Monday showed consumer price gains eased to 11.8% year-on-year in May, lower than economists’ forecasts. This has strengthened expectations that the State Bank of Pakistan (SBP) might shift away from its “higher-for-longer” stance on interest rates. A potential drop in interest rates could result in a decline in the Real Effective Exchange Rate (REER) index.
PERFORMANCE AGAINST MAJOR CURRENCIES
- Euro: PKR gained 20.41 paisa, closing at 302.64 compared to 302.84.
- British Pound: PKR appreciated by 3.63 paisa, closing at 355.57 compared to 355.61.
- Swiss Franc: PKR gained 89.3 paisa, closing at 311.79 compared to 310.89.
- Japanese Yen: PKR appreciated by 0.88 paisa, closing at 1.7828 compared to 1.7916.
- Chinese Yuan: PKR depreciated by 0.92 paisa, closing at 38.41 compared to 38.42.
- Saudi Riyal: PKR appreciated by 0.31 paisa, closing at 74.2 compared to 74.51.
- U.A.E Dirham: PKR depreciated by 0.29 paisa, closing at 75.77 compared to 75.77.
YEARLY PERFORMANCE
During the current financial year, the PKR has appreciated against the dollar by 7.69 rupees or 2.76%. In the current calendar year, the PKR has appreciated by 3.56 rupees or 1.28%.
MONEY MARKET OVERVIEW
In the money market, the benchmark 6-month Karachi Interbank Bid and Offer rates dropped by 10 basis points to 20.49% and 20.74%, respectively.
