The Pakistani Rupee (PKR) showed a modest improvement against the US Dollar (USD) on Tuesday, closing slightly higher in the interbank market. After opening the day at 282, the local currency traded in a narrow range throughout the session, hovering between 280 and 282 before settling at 281.02 against the greenback. This marked a minor day-on-day (DoD) appreciation of 0.02 percent, translating to a five paisa gain.
Despite the slight rebound, the PKR was unable to breach the psychological threshold of 281, underscoring continued pressure from demand-side factors in the forex market. The interbank market showed relative stability, while open market currency counters maintained slightly higher rates between 282 and 283 for the dollar, reflecting mild disparity between institutional and retail demand.
While the rupee ended the day marginally in green against the dollar, its performance against a basket of other major global currencies painted a more mixed picture. The local unit lost ground to most other currencies, reflecting broader weakness beyond the USD pairing. Analysts noted that this divergence could be attributed to global currency strength and investor uncertainty ahead of upcoming macroeconomic developments.
Against the Canadian Dollar (CAD), the rupee slipped by 84 paisas, while it shed Rs. 1.48 versus the Australian Dollar (AUD). The rupee also lost Rs. 1.42 to the Euro (EUR) and saw a sharper decline of Rs. 2.87 against the British Pound (GBP), reflecting both external strength in those currencies and ongoing volatility in the local forex market.
However, the PKR did manage to eke out minor gains against regional Gulf currencies. It improved by one paisa against the UAE Dirham (AED) and posted a similar one paisa gain versus the Saudi Riyal (SAR). These gains were largely symbolic, but they suggest a momentary balance in remittance-related inflows, especially as Pakistan approaches the final quarter of the fiscal year.
On a fiscal year-to-date (FYTD) basis, the rupee has depreciated by 0.96 percent against the US Dollar. This relatively mild devaluation comes amid Pakistan’s broader efforts to stabilize its external accounts, including continued engagement with international financial institutions and careful management of foreign exchange reserves.
Market observers suggest that the rupee’s short-term outlook will depend heavily on developments surrounding the International Monetary Fund (IMF) and other multilateral financing arrangements. With Pakistan’s next IMF review scheduled for early May, and an additional $1.3 billion climate resilience loan package under consideration, traders are closely watching the narrative from international lenders to gauge the likely trajectory of the PKR.
The State Bank of Pakistan (SBP) has so far maintained a cautious approach, allowing gradual and market-driven exchange rate movements. This has helped to curb speculative pressures but continues to keep the currency sensitive to external account shocks and shifts in investor sentiment.
While the rupee’s gain today may appear nominal, it reflects a stabilizing trend in the currency market that hinges on both global financial conditions and domestic policy decisions in the weeks ahead.