The Pakistani Rupee (PKR) experienced a cautious trading session today, reflecting broader pressures across global 🌍 and regional currencies. While the movement against the US Dollar remained largely range-bound, the local unit showed noticeable weakness against several major international currencies.
💵 A Flat Day Against the Dollar
Throughout the trading day, the PKR remained stable against the US Dollar, recording an intraday high (bid) of 280.30 and a low (ask) of 280.30. In the open market, however, exchange companies quoted the greenback slightly higher, with buying rates at 280.50 and selling rates reaching 281.35, signaling continued demand for dollars outside the interbank market.
🌐 Pressure from Major Global Currencies
The rupee struggled against key international currencies, posting losses across the board:
- 🇪🇺 Euro: PKR weakened by 69.11 paisa (0.21%), closing at 329.48 compared to 328.79 previously.
- 🇬🇧 British Pound: The local unit depreciated by 81.58 paisa (0.22%), ending the day at 375.41, up from 374.59 a day earlier.
- 🇨🇭 Swiss Franc: A modest decline of 3.38 paisa (0.01%) pushed the rate to 351.94.
- 🇯🇵 Japanese Yen: PKR slipped by 0.36 paisa (0.20%), closing at 1.8101 versus 1.8065 previously.
🤝 Regional Currencies Also Weigh on PKR
The rupee also lost ground against regional trading partners:
- 🇨🇳 Chinese Yuan: PKR fell by 3.55 paisa (0.09%) to 39.80 from 39.77.
- 🇸🇦 Saudi Riyal: A marginal decline of 0.98 paisa (0.01%) took the rate to 74.72.
- 🇦🇪 UAE Dirham: The local unit edged lower by 0.19 paisa, closing at 76.32.
📊 A Broader Perspective: Fiscal vs Calendar Year
Despite today’s softness, the bigger picture offers some relief. During the current fiscal year, the PKR has strengthened by 3.46 rupees (1.24%) against the US Dollar 💪. However, on a calendar-year basis, it has still declined by 1.75 rupees (0.62%), highlighting ongoing structural and external challenges.
💰 Money Market Sees Easing Rates
Meanwhile, the money market delivered a more positive signal. The benchmark 6-month Karachi Interbank Offered Rate (KIBOR) saw a notable drop 📉, with bid and offer rates falling by 35 basis points to 10.51% and 10.76%, respectively. This decline suggests improving liquidity conditions and easing short-term borrowing costs.
🧠 Final Thoughts
While the rupee managed to hold its ground against the US Dollar today, continued weakness against major and regional currencies underscores persistent pressure on Pakistan’s external account. At the same time, easing money market rates may offer some short-term relief for businesses and borrowers. Investors and policymakers alike 👀 will be watching closely to see whether these trends stabilize—or intensify—in the days ahead.