PKR edges up marginally against US dollar in early trading

KARACHI: The Pakistani rupee (PKR) remained stable against the US dollar (USD) on Wednesday, gaining a slight 0.01 per cent during early trading hours in the interbank market.

At the start of the day, the rupee was valued at Rs277.83, up by just Re0.01 from the previous day’s closing rate of Rs277.84, according to the State Bank of Pakistan (SBP).

Globally, the US dollar showed little change against major currencies, as investors focused on US President-elect Donald Trump’s promises of higher tariffs on countries like Canada, Mexico, and China.

These pledges, made on Monday, caused some market uncertainty. Traders were also awaiting an important US inflation report due later in the day.

On the global front, the US dollar remained slightly lower against the Canadian dollar, trading at C$1.4052, below Tuesday’s peak of C$1.4178. It also remained weaker against the Mexican peso, after reaching its highest point since July 2022 in the previous session.

In the last few sessions, the US dollar has been volatile, initially falling when Trump nominated hedge fund manager Scott Bessent for the position of US Treasury Secretary, but later rising again after Trump’s tariff announcements.

So far this fiscal year, the PKR has appreciated by 50 paisa (0.18 per cent) against the US dollar. In this calendar year, it has strengthened by Rs4.02 (1.45 per cent).

On Tuesday, the Pakistani rupee had weakened slightly, falling by 8.85 paisa (0.03 per cent) against the dollar, closing at Rs277.84 compared to the previous session’s Rs277.75.

Against other major currencies, the PKR saw mixed movements. It rose by 19.45 paisa (0.06 per cent) against the British pound, reaching Rs348.62.

However, it weakened by 84.26 paisa (0.29 per cent) against the euro, closing at Rs291.12. The rupee also dropped 0.83 paisa (0.46 per cent) against the Japanese yen, closing at 1.8054.

Additionally, the rupee weakened by Rs1.73 (0.56 per cent) against the Swiss franc, closing at Rs313.33. It rose by 5.23 paisa (0.14 per cent) against the Chinese yuan, closing at Rs38.28.

The local currency also slightly depreciated by 1.76 paisa (0.02 per cent) against the Saudi riyal, closing at Rs73.99, and by 2.41 paisa (0.03 per cent) against the UAE dirham, settling at Rs75.64.

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