Intraday trade: Pakistani rupee sees modest recovery against US dollar

KARACHI: The Pakistani rupee showed a mild gain against the US dollar during Wednesday’s early interbank session, extending its upward trend from the previous day.

In the morning, the local currency traded at 280.73 against the greenback, strengthening by 14 paisa or 0.05 percent. The movement reflected steady sentiment in the local market, even as global currencies saw mixed performances amid renewed volatility in financial markets.

Global currency overview

Globally, investors sought safety in the US dollar and Japanese yen as a sharp tech-led selloff on Wall Street spread across Asian markets. The US dollar index, which tracks the greenback against major currencies including the euro, yen and sterling, hovered near 100.18 after touching 100.25, its highest since August 1.

The dollar’s strength was also supported by divisions among Federal Reserve policymakers over the direction of interest rates, lowering expectations of a rate cut in December.

Meanwhile, the Australian and New Zealand dollars remained under pressure. Sterling also weakened, staying near a seven-month low after British finance minister Rachel Reeves signalled possible tax hikes in the upcoming budget.

Previous session performance

According to the State Bank of Pakistan, the rupee closed Tuesday’s interbank session at 280.87 per dollar, slightly stronger than Monday’s 280.90. During that session, the local unit traded between an intraday high of 281.00 and a low of 281.90.

So far in the fiscal year, the PKR has appreciated by 2.89 against the US dollar, a gain of around 1.03 percent. However, it remains weaker by 2.32 or 0.83 percent since the start of 2025.

The rupee also posted small gains against other major currencies. It rose 0.01 percent against the UAE dirham to close at 76.47, strengthened 0.31 percent versus the Swiss franc to 347.74, and improved 0.14 percent against the British pound to 368.30. However, it slipped 0.41 percent against the Japanese yen, ending at 1.8295.

NBP issues daily forex rates

The National Bank of Pakistan released its daily foreign exchange rates on Wednesday, with the rupee quoted at 280.75 for TT buying and 281.25 for TT selling against the US dollar. These benchmark rates provide guidance for market participants and reflect prevailing trends in the interbank market.