Intraday trade: PKR gains 11 paisa against USD

KARACHI: The Pakistani rupee (PKR) saw a modest improvement against the US dollar (USD) on Tuesday morning, appreciating by 0.04 per cent in the interbank market during early trading hours.

By 11:00 AM, the local currency was trading at Rs278.72, reflecting a gain of 11 paisa against the greenback.

According to the State Bank of Pakistan (SBP), the rupee had closed at Rs278.83 in the previous trading session.

So far in the current fiscal year, the PKR has depreciated by 49.13 paisa, or 0.18 per cent, against the USD. Additionally, since the beginning of 2025, the rupee has weakened by 28.25 paisa, or 0.10 per cent.

Internationally, on Tuesday, the Japanese yen gave up some of its safe-haven gains as investors assessed the potential impact of a Chinese startup’s free open-source artificial intelligence model. Meanwhile, fresh tariff threats from the US had the euro on the defensive.

The US dollar remained steady after a pullback the previous day, triggered by a broad shakeout in financial markets.

The emergence of China’s DeepSeek free AI assistant, which claims to use cheaper chips and less data, has disrupted predictions that had previously supported US technology stocks, particularly chipmaker Nvidia, leading to a sell-off and a risk-off sentiment across markets.

The US dollar rose by 0.7 per cent against the yen, reaching 155.70, returning to its recent trading range after the yen had strengthened to its highest level since mid-December, hitting 153.715 on Monday amid safe-haven flows.

The euro traded at $1.0428, down 0.6 per cent, ahead of the European Central Bank’s policy meeting this week, where a potential interest rate cut is expected. This move follows US President Donald Trump’s discussions on imposing tariffs on imported computer chips, pharmaceuticals, and steel to encourage production within the United States.

The dollar index, which tracks the US dollar against six major currencies, including the yen and euro, rose 0.13 per cent to 107.94, recovering from a drop to 107.68, its lowest level since mid-December, on Monday.

Previous close

On Monday, the PKR had fallen by 8.03 paisa, or 0.03 per cent, against the USD, closing the day at Rs278.83 per USD, compared to Rs278.75 at the end of Friday, January 24, 2025.

In the open market, currency exchange companies quoted the dollar at Rs279.50 to Rs280 for buying and Rs281.30 to Rs281.50 for selling.

PKR’s performance against other foreign currencies:

The PKR gained 6.27 paisa, or 0.16 per cent, against the Chinese yuan, closing at Rs38.38 compared to Rs38.45.

The PKR weakened by 9.80 paisa, or 0.03 per cent, against the euro, closing at Rs291.71 from Rs291.62.

Against the British pound, the PKR depreciated by 1.51 rupees, or 0.44 per cent, closing at Rs346.80 compared to Rs345.29.

The local currency gained 35.30 paisa, or 0.11 per cent, against the Swiss franc, closing at Rs307.59.

Against the Japanese yen, the PKR rose by 0.51 paisa, or 0.28 per cent, closing at Rs1.7887 compared to Rs1.7938.

The local currency weakened by 1.94 paisa, or 0.03 per cent, against the Saudi riyal, closing at Rs74.33.

The PKR also depreciated by 2.29 paisa, or 0.03 per cent, against the UAE dirham, closing at Rs75.92.

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