PKR holds ground against dollar, Saudi Riyal despite market jitters 

KARACHI: The Pakistani rupee (PKR) showed a slight gain against the US dollar (USD) on Monday, maintaining near stability amid heightened market uncertainty and regional tensions. 

According to data from the interbank market, the local currency appreciated marginally by 0.95 paisa to close at Rs281.16 per dollar, compared with the previous day’s close of Rs281.17. 

Throughout the session, the rupee traded within a tight range, recording an intraday high of Rs281.80 and a low of Rs282.20. This mild movement reflected a cautious market sentiment, with traders closely monitoring political and regional developments that have recently weighed on investor confidence. 

During the ongoing fiscal year, the rupee has appreciated by Rs2.60, or 0.93 percent, against the greenback, showing some resilience after months of volatility. However, when viewed from the start of the calendar year, the currency has still weakened by Rs2.61, mirroring the broader challenges faced by emerging market currencies amid global economic uncertainty. 

Mixed performance against major currencies 

The rupee’s performance against other major currencies remained mixed. It recorded minor improvements against Gulf currencies, inching up 0.25 paisa to 74.96 against the Saudi riyal and 0.15 paisa to 76.55 against the UAE dirham. The local unit also strengthened by 4.09 paisa, or 0.10 percent, against the Chinese yuan, closing at 39.42 compared to 39.47 a day earlier. 

However, the PKR lost ground against several other global currencies. It declined by 49.51 paisa, or 0.15 percent, against the euro to close at 326.16, and weakened by 70.43 paisa, or 0.19 percent, against the British pound, settling at 374.88. The local unit also slipped 1.12 rupees, or 0.32 percent, against the Swiss franc to 350.25, while against the Japanese yen, it fell 0.60 paisa to 1.8464. 

In the open market, exchange companies quoted the dollar at Rs281.50 for buying and Rs282.25 for selling, reflecting a calm but cautious trading environment. 

PSX sentiment hit by regional tensions 

Investor sentiment remained fragile as cross-border tensions between Pakistan and Afghanistan rattled financial markets. The Pakistan Stock Exchange (PSX) experienced sharp losses during the day, with the benchmark KSE-100 Index plunging by over 4,500 points during intra-day trading. At one point, the index dropped to an intra-day low of 158,067.92 points before recovering slightly. 

By 1:55pm, the KSE-100 Index was recorded at 159,365.39, showing a decline of 3,732.80 points or 2.29 percent. Analysts said that the escalating regional situation, combined with fears of reduced foreign inflows, had dampened investor confidence across both currency and equity markets. 

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