Key Points
- PKR settles at 280.90 in the interbank market, up PKR0.01 (SBP).
- Currency maintains a weekly positive run with marginal appreciation.
- Dollar firm globally near three-month high ahead of key US data.
- Oil prices rise as OPEC+ delays output hikes; Asian trading remains thin.
ISLAMABAD: The Pakistani rupee registered a marginal improvement against the US dollar on Monday, extending its mild upward trajectory from last week amid stable market conditions and balanced forex flows.
According to data released by the State Bank of Pakistan (SBP), the PKR settled at 280.90 against the US dollar in the interbank market, gaining PKR0.01 compared with Friday’s close of 280.91.
In the open market, rates hovered near parity, reflecting subdued demand and the steady supply from exporters and remittance inflows.
During the previous week, the PKR had strengthened by PKR0.11 or 0.04%, closing at 280.91 compared to 281.02 the week earlier.
Currency dealers said sentiment remains stable as the market adjusts to steady external inflows and improved liquidity.
“The PKR’s performance is consistent with its recent pattern of consolidation as speculative activity stays low,” said a senior dealer at a Karachi-based bank.
Globally, the US dollar firmed near a three-month high on Monday as investors awaited fresh economic data to gauge the strength of the US economy and the Federal Reserve’s policy stance.
The yen traded near an eight-and-a-half-month low, pressured by wide interest rate differentials between the US and Japan.
Trading in Asian markets was muted due to a holiday in Japan, leaving regional currencies mostly range-bound, though many remained near recent lows against a resilient dollar.
Analysts cited that last week’s 25-basis-point Fed rate cut, accompanied by cautious remarks from Chair Jerome Powell, reinforced expectations that further easing may not come this year.
Meanwhile, oil prices, a key factor of currency parity, rose modestly after OPEC+ announced it would hold off production hikes in the first quarter of 2026, helping ease fears of a supply glut.
Brent crude futures were up 28 cents to $65.05 per barrel, while US West Texas Intermediate (WTI) gained 25 cents to $61.23 per barrel.
Analysts expect the PKR to stay within a narrow band this week, with direction likely guided by upcoming inflation data and the central bank’s foreign exchange reserve updates.
