The Pakistani rupee experienced a slight decline against the US dollar in the interbank market on Tuesday, depreciating by 0.03%. At the close of trading, the rupee settled at PKR 278.05, reflecting a loss of Re0.07 from Monday’s closing rate of PKR 277.98, as reported by the State Bank of Pakistan (SBP).
In the open market, the rupee also showed a mixed trend, losing 6 paise for buying and 8 paise for selling against the dollar, closing at PKR 277.21 and PKR 279.03, respectively. However, it gained 40 paise for buying and 42 paise for selling against the euro, finishing at PKR 291.10 and PKR 293.24, respectively. Against the UAE dirham and Saudi riyal, the rupee witnessed marginal changes, losing 1 paisa for buying in both cases while selling rates remained stable at PKR 76.00 and PKR 74.20, respectively.
On the global front, the US dollar maintained its position, supported by market anticipation of key inflation data due on Wednesday. The dollar index, which measures its strength against a basket of six major currencies, remained steady at 106.16. The greenback showed mixed performance, easing slightly against the Swiss franc and yen while traders speculated on the Federal Reserve’s upcoming interest rate policy.
In commodities, oil prices—a crucial factor influencing currency parity—dipped as concerns around geopolitical instability in Syria lessened. Brent crude futures declined by 24 cents to $71.90 per barrel, while US West Texas Intermediate dropped by 28 cents to $68.09. Despite the day’s dip, both benchmarks had risen by over 1% on Monday, buoyed by China’s plans to stimulate demand through economic measures.
The rupee’s marginal decline reflects the delicate balance between external economic pressures and domestic market dynamics. Analysts continue to monitor global energy prices and economic data from key trading partners, as well as Pakistan’s domestic policies, to assess the currency’s trajectory. While remittances and exports provide some stability, sustained economic reforms are critical for mitigating future volatility.