Key Points
- Rupee closes at 280.61 per US dollar in interbank market, up Rs 0.01
- Open market rates largely unchanged, with slight upward movement in major urban centres
- Market activity subdued ahead of global economic releases and holidays
- Analysts highlight the balance between domestic demand and external pressures on the currency
KARACHI: The Pakistani rupee recorded a marginal improvement against the US dollar in Monday’s interbank trading, closing at 280.61 per dollar, a gain of Rs 0.01, according to the State Bank of Pakistan (SBP).
The domestic unit showed modest resilience over the week, posting a slight appreciation of Rs 0.10 or 0.04% in interbank transactions, as reported by the SBP. The local currency had settled at 280.62 in interbank markets last Friday, compared with 280.72 at the close of the previous week.
On the open market, data compiled by the Exchange Companies Association of Pakistan (ECAP) indicated that the rupee maintained relative stability, with minor fluctuations in major cities. The dollar was quoted at 281.10 in Karachi and 281.05 in Lahore, reflecting limited movement from prior sessions.
Analysts attributed the stability to a combination of steady demand from importers, cautious investor sentiment, and the central bank’s ongoing interventions to maintain liquidity in the interbank system. Market sources also noted that upcoming economic announcements and international developments are likely keeping traders conservative.
Globally, the US dollar held steady against major currencies, including the euro and yen, amid thin trading ahead of the British budget and a New Zealand policy meeting. Brent crude futures were unchanged at $62.56 per barrel, while West Texas Intermediate stood at $58.04, marginally down from prior levels, according to global commodity exchanges, as reported by Reuters.
Experts highlighted that global cues, such as potential US rate cuts and developments in the Russia-Ukraine peace framework, continue to influence domestic currency dynamics. Meanwhile, Japan’s yen showed continued weakness, which is seen indirectly supporting the relative stability of emerging-market currencies, including the Pakistani rupee.
