PKR edges higher against US dollar as market opens

The Pakistani rupee inched up against the US dollar on Monday morning, continuing its cautious upward trend from last week. In early trading, the local currency stood at Rs280.90 against the dollar, gaining Re0.2 or 0.07 percent in the interbank market.

The improvement follows a modest rise of Re0.07, or 0.02 percent, recorded during the previous week, when the rupee closed at Rs281.10 compared to Rs281.17 a week earlier, according to the State Bank of Pakistan (SBP).

The rupee’s movement reflects steady sentiment in the currency market, supported by controlled dollar demand and stable inflows from remittances.

Previous closing and performance against other currencies

On Friday, the SBP reported that the rupee gained 1.21 paisa to close at Rs281.10 per dollar after touching an intraday high of Rs281.30 and a low of Rs282.15.

In the open market, exchange companies quoted the dollar at Rs281.15 for buying and Rs282.15 for selling.

Against other major currencies, the rupee showed a mixed performance. It gained 28.33 paisa against the British pound, closing at Rs377.36, and appreciated slightly against the Saudi riyal and Chinese yuan.

However, it slipped against the euro and Japanese yen, losing Rs1.46 and 1.81 paisa respectively. The rupee also weakened by Rs3.29 against the Swiss franc, settling at Rs356.05.

Global market influences

Globally, the US dollar strengthened as the Japanese yen lost ground. Japan’s political developments contributed to the yen’s decline, with Sanae Takaichi, known for supporting monetary stimulus, reportedly securing key backing to become the next prime minister.

Investor confidence also improved after a softening in US-China trade tensions and easing concerns over US regional banks, leading to reduced demand for safe-haven currencies such as the yen.

Broader trend

So far in the current fiscal year, the rupee has appreciated by Rs2.66 or 0.95 percent against the dollar. However, on a calendar-year basis, it has weakened by Rs2.55 or 0.91 percent.

In the money market, the benchmark six-month Karachi Interbank Bid and Offer rates edged up by 2 basis points, settling at 10.95 percent and 11.20 percent respectively, indicating a slight tightening in short-term liquidity conditions.

The rupee’s modest recovery shows continued stability in the foreign exchange market, though traders remain watchful of global economic shifts and domestic policy signals that could influence the currency’s direction in the coming weeks.