PKR remains stable against US dollar, gains slightly in early trade

KARACHI: The Pakistani rupee (PKR) remained largely stable against the US dollar (USD) during early trading hours on Wednesday, appreciating by 0.01 per cent. By 11:00 AM, the rupee was trading at Rs278.25, reflecting a slight gain of 2 paisa against the greenback.

On the previous trading day, the PKR had declined by 0.04 per cent, or 10.04 paisa, settling at Rs278.27 per USD in the interbank market.

Here’s how the PKR performed against other major currencies during Tuesday’s session:

UAE Dirham: The local currency fell by 2.74 paisa, or 0.04 per cent, closing at Rs75.76.

British Pound: The rupee fell by Rs2.01, or 0.57 per cent, to Rs353.45 from Rs351.44.

Saudi Riyal: The rupee depreciated by 3.46 paisa, or 0.05 per cent, to Rs74.06.

Euro: The PKR gained 14.49 paisa, or 0.05 per cent, closing at Rs292.14 compared to the previous rate of Rs292.29.

Chinese Yuan: The PKR weakened by 0.72 paisa, or 0.02 per cent, closing at Rs38.21, down from Rs38.20.

Swiss Franc: The PKR strengthened by Rs1.68, or 0.54 per cent, closing at Rs310.35.

Japanese Yen: The rupee appreciated by 0.61 paisa, or 0.34 per cent, closing at Rs1.8059 compared to Rs1.8120.

International outlook

Globally, the US dollar remained steady against major currencies, including the Japanese yen, as investors anticipated the outcome of the Federal Reserve’s monetary policy decision. The Fed is expected to announce a 25-basis-point interest rate cut at the conclusion of its two-day policy meeting on Wednesday, with markets placing a 97 per cent probability of this outcome, according to CME’s FedWatch tool.

Attention will be focused on the Fed’s updated economic projections for the coming years, especially any indication of future rate cuts in 2025. With inflation and activity data remaining strong, the Fed may signal a slower pace of cuts ahead, possibly reducing the number of planned cuts in 2025 from four to three, according to market analyst Tony Sycamore from IG.

Investors are also weighing the potential impact of proposed tariffs and tax cuts by the incoming Trump administration on the Fed’s economic outlook.

The US dollar index, which measures the greenback against a basket of six major currencies, remained relatively unchanged, down 0.04 per cent at 106.89. On Monday, the index reached its highest level since November 26, touching 107.18.

PKR’s closing history (December 2024)

December 2: The PKR increased by 0.03 per cent, or 7.65 paisa, against the USD to end the day at Rs277.97 per USD, compared to the last closing of Rs278.05.

December 3: The PKR increased by 10.48 paisa, or 0.04 per cent, against the USD to settle the trade at Rs277.87 per USD, compared to the last closing of Rs277.97.

December 4: The PKR fell by 5.41 paisa, or 0.02 per cent, against the USD, settling the trade at Rs277.92 per USD, compared to the last closing of Rs277.87.

December 5: The PKR fell by 0.01 per cent or 2.17 paisa against the USD to close the day at Rs277.94 per USD, compared to the last closing of Rs277.92.

December 6: The PKR dropped by 0.02 per cent or 6.47 paisa against the USD to settle the day at Rs278.01 per USD, compared to the last closing of Rs277.94.

December 9: The PKR rose by 0.01 per cent or 3.42 paisa or against the USD to settle the trade at Rs277.98 per USD, compared to the last closing of Rs278.01.

December 10: The PKR dropped by 0.03 per cent or 7 paisa against the USD to end the day at Rs278.05, compared to previous closing of Rs277.98.

December 11: The PKR decreased by 0.04 per cent or 11.82 paisa against the USD to close the day at Rs278.17, compared to last closing of Rs278.05.

December 12: The PKR declined by 0.02 per cent or 6.23 paisa against the USD to settle end the day at Rs278.23, versus previous closing of Rs278.17.

December 13: The PKR gained 0.04 per cent or 11.19 paisa against the USD to settle the day at Rs278.12, versus last closing of Rs278.23.

December 16: The PKR decreased by 5.36 paisa or 0.02 per cent against the US dollar to settle the day at Rs278.17, compared to previous closing of Rs278.12.

December 17: The PKR decreased 0.04 per cent by 10.04 paisa or against the USD to settle the trade at Rs278.27, compared to previous closing of Rs278.17.

Since the start of the current fiscal year, PKR has appreciated only 0.02 per cent or 6.86 paisa against the USD. On the other hand, PKR has increased 1.29 per cent or Rs3.59 since the start of 2024 against USD.

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