Intraday trade: PKR opens week with slight gain against USD

KARACHI: The Pakistani rupee (PKR) showed little movement against the US dollar (USD) on Monday, with a slight appreciation seen in early interbank trading.

At the start of the day, the local currency gained three paisa to reach Rs281.63 against the greenback, reflecting a modest 0.01 per cent rise.

Last week, the PKR recorded a marginal gain of five paisa, or 0.02 per cent, in the interbank market.

Despite the recent stability, the PKR has weakened by Rs3.32, or 1.18 per cent, during the current fiscal year. Since the beginning of 2025, it has slipped by Rs3.11, or 1.11 per cent, against the USD.

Global currency trends

Globally, the USD pared back its gains in early Asian trading following a surprise downgrade of the US government’s credit rating and renewed concerns over trade tensions.

Although the dollar rose 0.6 per cent last week amid a temporary easing of trade hostilities between the US and China, recent economic indicators – including higher import prices and declining consumer confidence – weighed on investor sentiment.

Adding to the uncertainty, former US President Donald Trump is reportedly facing opposition within his own party over a proposed tax cut plan, which could increase the national debt by an estimated $3 trillion to $5 trillion over the next decade.

In currency markets, the dollar dipped 0.3 per cent to 145.22 yen and slipped 0.2 per cent against the Swiss franc, another safe-haven currency.

Previous close

On Friday, the PKR closed at Rs281.66 against the USD in the interbank market, down by just over five paisa, or 0.02 per cent, compared to Thursday’s close at Rs281.61, according to data from the State Bank of Pakistan (SBP).

In the open market, exchange companies quoted the USD at Rs282.50 for buying and Rs283.75 for selling.

PKR versus other foreign currencies:

Saudi Riyal: PKR was down 1.34 paisa (0.02 per cent) to Rs75.09

Japanese Yen: Dropped 0.97 paisa (0.50 per cent) to Rs1.9400

Euro: PKR fell by 38.02 paisa (0.12 per cent) to Rs315.73

UAE Dirham: Decreased 1.37 paisa (0.02 per cent) to Rs76.69

Swiss Franc: Lost Rs2.08 (0.62 per cent) to settle at Rs338.15

Chinese Yuan: Deteriorated 5.49 paisa (0.14 per cent) to Rs39.11

British Pound: Weakened by Rs1.39 (0.37 per cent) to close at Rs375.05

IMF trims Pakistan’s growth outlook

In its latest review under the Extended Fund Facility (EFF), the International Monetary Fund (IMF) has downgraded Pakistan’s GDP growth forecast for the ongoing 2024–25 fiscal year to 2.6 per cent. This is down from its earlier projection of 3.2 per cent.

The IMF cited weaker-than-expected economic activity in the first half of the fiscal year and broader global uncertainty as the main reasons for the downgrade

According to the report, GDP growth in fiscal year 2024 stood at 2.5 per cent. Growth slowed in the first two quarters, with year-on-year expansion of 1.3 per cent in Q1 and 1.7 per cent in Q2, reflecting poor output from major Kharif crops and sluggish industrial activity.

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