PKR trades flat against USD in early interbank session

KARACHI: The Pakistani rupee (PKR) held its ground against the US dollar (USD) in early trading on Tuesday, showing little movement as global currency markets remain on edge.

The PKR was trading at Rs281.78 against the greenback in the interbank market during the morning session — a marginal slip of just one paisa from the previous close.

So far in the current fiscal year, the PKR has lost Rs3.43, down 1.22 per cent against the USD. Since the beginning of the calendar year 2025, it has declined by Rs3.22 or 1.14 per cent, reflecting continued pressure on the currency amid domestic and external economic challenges.

Global backdrop: dollar in holding pattern

Globally, the USD appeared to pause its recent decline, trading largely flat after sliding for most of the past week. The greenback has come under renewed scrutiny amid growing concern over the United States’ widening fiscal deficit and uncertainty over economic policy.

On Monday, the dollar came under broad selling pressure after Moody’s issued a surprise downgrade of the US sovereign outlook, citing long-term deficit risks. Market participants are now watching closely as lawmakers in Washington prepare for a key vote on a proposed expansion of tax cuts under President Donald Trump’s administration.

The US dollar index, which tracks the currency against a basket of peers, has fallen sharply — down more than 10 per cent from its peak in January, marking one of its steepest three-month declines in recent years.

Rupee’s performance in interbank and open markets

In Monday’s session, the PKR slipped by 10.42 paisa, or 0.04 per cent, closing at Rs281.77 versus USD, compared to Friday’s closing rate of Rs281.66. The home unit traded within a narrow band throughout the day, touching a high of Rs281.80 and a low of Rs281.75.

In the open market, exchange companies quoted the American currency at Rs282.50 for buying and Rs283.75 for selling, suggesting continued demand from importers and the general public.

Performance against other foreign currencies

The rupee’s performance was mixed when compared to other major foreign currencies on Monday. Against the Saudi riyal, it slipped by 2.68 paisa (0.04 per cent) to end at Rs75.12.

It fared slightly better against the Chinese yuan, gaining 5.27 paisa (0.13 per cent) to close at Rs39.06. However, the local currency fell sharply against the British pound, losing Rs1.56 (0.42 per cent) to settle at Rs376.61.

The rupee also edged down against the UAE dirham, dropping by 2.83 paisa (0.04 per cent) to close at Rs76.71, and lost 90.58 paisa (0.29 per cent) against the euro, finishing at Rs316.64.

In a rare positive move, the local unit gained 17.92 paisa (0.05 per cent) against the Swiss franc, closing at Rs337.97. However, it slipped slightly against the Japanese yen, down by 0.46 paisa (0.24 per cent) to end the session at Rs1.9446.

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