KARACHI: The Pakistani rupee (PKR) recorded a slight improvement against the US dollar (USD), appreciating by 0.01 per cent in the interbank market during the initial trading hours on Monday.
In the morning, the PKR was trading at Rs278.53, gaining 3 paisa against the greenback.
So far in the current fiscal year, the PKR has depreciated against the USD by 23.38 paisa, or 0.08 per cent. Meanwhile, since the start of 2025, the PKR has seen a depreciation of 2.50 paisa, or 0.01 per cent.
Last week, the rupee remained relatively stable against the US dollar in the interbank market, closing at Rs278.58 compared to Rs278.56 a week earlier, according to the State Bank of Pakistan (SBP). Overall, the PKR appreciated by 1.34 paisa against the USD over the week.
Here is how the PKR performed against other major currencies on the previous trading day:
– Against the British Pound, the PKR depreciated by 87.70 paisa, or 0.26 per cent, closing at Rs342.30 compared to Rs341.42 a day earlier.
– The PKR appreciated by 0.94 paisa, or 0.01 per cent, against the UAE Dirham, closing at Rs75.84.
– It gained 0.84 paisa, or 0.02 per cent, against the Chinese Yuan, closing at Rs37.99 compared to Rs38.00.
– The PKR depreciated by 1.24 paisa, or 0.00 per cent, against the Swiss Franc, closing at Rs305.24.
– Against the Euro, the PKR depreciated by 8.98 paisa, or 0.03 per cent, closing at Rs286.78 compared to Rs286.69.
– The local currency appreciated by 0.63 paisa, or 0.01 per cent, against the Saudi Riyal, closing at Rs74.21.
– The PKR gained 0.18 paisa, or 0.10 per cent, against the Japanese Yen, closing at Rs1.7586 compared to Rs1.7604 a day earlier.
On the international front, the US dollar started the week on a strong note, maintaining its strength against a basket of currencies at 109.67, hovering near its highest level since November 2022. This followed a robust US jobs report that highlighted the outperformance of the US economy compared to the rest of the world.
Markets are now expecting only 27 basis points of Federal Reserve rate cuts this year, down from approximately 50 bps earlier.
There is growing speculation that US President-elect Donald Trump’s policies, including potential import tariffs, tax cuts, and immigration restrictions, may fuel inflation. Trump is set to return to the White House in a week.
Data on US inflation, due on Wednesday, could further influence expectations regarding the Fed’s policy stance, with any unexpected inflation increase potentially closing the door on further easing. Several Federal Reserve officials are also scheduled to speak this week.
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