Intraday trade: PKR gains 10 paisa against USD despite PSX crash

KARACHI: The Pakistani rupee (PKR) posted a marginal gain against the US dollar (USD) during early trading hours on Wednesday, defying a sharp sell-off in local equities triggered by escalating tensions between Pakistan and India.

The rupee rose by 0.04 per cent in the interbank market, reaching Rs281.27 against the greenback before 10:20 am local time, marking an appreciation of 10 paisa from the previous close.

This modest uptick came despite the Pakistan Stock Exchange plummeting by over 6,000 points in morning trade, as geopolitical jitters rattled investor sentiment.

So far in the current fiscal year, the rupee has weakened by Rs3.03 or 1.08 per cent against the dollar. On a calendar year-to-date basis, the local unit is down Rs2.82 or 1.00 per cent.

Globally, the dollar held steady on Wednesday ahead of a closely watched US Federal Reserve policy meeting. Market participants are awaiting fresh guidance from Fed Chair Jerome Powell, who is expected to indicate that more economic data is needed before any policy adjustments are made.

Meanwhile, Asian investors have continued to scale back holdings in US assets, contributing to broader dollar softness.

Sentiment improved slightly following reports that US and Chinese officials are scheduled to meet on Saturday, easing fears of a renewed trade standoff that had unsettled global markets in recent weeks. Analysts noted that outflows from lower-yielding emerging markets, including Pakistan, have slowed somewhat since last week.

Tuesday’s interbank recap — May 6, 2025

In the previous session, the rupee closed at 281.37 per US dollar, slipping by 15 paisa or 0.05 per cent compared to Monday’s close of Rs281.22. The currency traded within a narrow range, recording an intraday high of Rs281.35 and a low of Rs281.25.

Against other major currencies, the rupee largely weakened:

Saudi Riyal (SAR): Down 2.60 paisa or 0.03 per cent to Rs75.02

British Pound (GBP): Dropped Rs1.21 or 0.32 per cent to Rs374.76

Chinese Yuan (CNY): Fell 32.23 paisa or 0.83 per cent to Rs39.00

Euro (EUR): Declined by 80.29 paisa or 0.25 per cent to Rs319.01

UAE Dirham (AED): Weakened by 4.30 paisa or 0.06 per cent to Rs76.61

Japanese Yen (JPY): Lost 1.47 paisa or 0.75 per cent, ending at Rs1.9630

Swiss Franc (CHF): Dropped Rs1.13 or 0.33 per cent to Rs341.35Read next: PSX crashes as KSE-100 sheds over 6,500 points amid Pakistan-India tensions