Intraday trade: PKR posts minor gain against USD

KARACHI: The Pakistani rupee (PKR) posted a slight gain against the US dollar (USD) in early trading Tuesday, rising by four paisa to Rs281.53 in the interbank market, marking a 0.01 per cent appreciation.

Despite the marginal uptick, the PKR remains under pressure overall. Since the start of the fiscal year, the currency has weakened by Rs3.23 or 1.15 per cent. On a calendar-year basis, it is down Rs3.02 or 1.07 per cent against the greenback.

Global market moves

The US dollar remained firm on Tuesday, supported by a cooling of trade tensions between Washington and Beijing. The two countries agreed to suspend new tariffs for 90 days, prompting a rally in global markets and bolstering demand for the greenback.

The dollar index hovered near a one-month high at 101.67. The de-escalation in the US-China trade row also tempered expectations of near-term interest rate cuts by the Federal Reserve, contributing to higher US Treasury yields. The two-year yield stood near a one-month peak at 3.9977 per cent, while the 10-year yield was last at 4.4551 per cent.

Previous close

The mild appreciation follows a firmer close on Monday, when the rupee ended the session at Rs281.57, up 13.85 paisa from the previous close of Rs281.71.

Currency dealers attributed the gain to improved market sentiment after the International Monetary Fund approved the next loan tranche for Pakistan and a regional ceasefire was announced — developments that helped ease pressure on the foreign exchange market.

Intraday, the rupee traded between Rs281.55 and Rs281.80. In the open market, the USD was quoted at Rs281.52 for buying and Rs281.62 for selling.

Rupee’s recent performance against other currencies

On Monday, the PKR posted mixed performance against major currencies:

Saudi Riyal: Up 0.05 per cent to Rs75.06

Chinese Yuan: Down 0.39 per cent to Rs39.04

British Pound: Up 0.69 per cent to Rs371.09

UAE Dirham: Up 0.05 per cent to Rs76.65

Euro: Up 1.32 per cent to Rs312.85

Swiss Franc: Up 1.77 per cent to Rs333.36

Japanese Yen: Up 1.92 per cent to Rs1.9042

Currency dealers said the rupee’s recent stability is likely to hold in the short term, supported by foreign inflows and easing geopolitical concerns.

However, its medium-term direction will depend on external financing flows, inflation trends, and the country’s ability to maintain IMF programme targets.

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