By Moaaz Manzoor

The Pakistani rupee remained broadly stable against major international currencies during the third week of May, posting marginal gains against the US dollar amid improving foreign exchange reserves, stable market sentiment and continued strong participation in government debt auctions, reports Wealth Pakistan.

According to the State Bank of Pakistan (SBP), the US dollar stood at Rs278.3332 for buying and Rs278.7583 for selling on May 18. The greenback gradually eased to Rs278.2963 and Rs278.7214 on May 19, followed by Rs278.2886 and Rs278.7137 on May 20.

The dollar further declined to Rs278.2832 and Rs278.7083 on May 21 before closing the week at Rs278.2463 for buying and Rs278.6714 for selling on May 22, indicating a slight appreciation of the rupee over the week.

The euro remained relatively stable throughout the period. It stood at Rs323.4138 for buying and Rs323.9053 for selling on May 18 before moving to Rs323.7261 and Rs324.2176 on May 19. The common currency later eased to Rs322.5604 and Rs323.0462 on May 20 before ending the week at Rs323.1157 and Rs323.6064 on May 22.

The British pound recorded mixed movements during the week. It stood at Rs370.7701 for buying and Rs371.3382 for selling on May 18 before strengthening to Rs372.9939 and Rs373.5668 on May 19. The pound later closed the week at Rs373.5949 for buying and Rs374.1760 for selling on May 22.

Among regional currencies, the Saudi riyal remained largely stable, moving from Rs74.0899 for buying and Rs74.1989 for selling on May 18 to Rs74.1453 and Rs74.2550 by May 22.

The Chinese yuan also showed limited fluctuation during the week. It stood at Rs40.8968 for buying and Rs40.9492 for selling on May 18 before closing at Rs40.9600 and Rs41.0126 on May 22.

Meanwhile, the Japanese yen remained almost unchanged, easing slightly from Rs1.7510 for buying and Rs1.7536 for selling on May 18 to Rs1.7492 and Rs1.7517 by May 22.

Broader macroeconomic indicators also remained supportive of the rupee during the week. According to Arif Habib Limited (AHL), the rupee remained broadly stable against the US dollar and was recorded at Rs278.52 per dollar compared with Rs278.61 in the previous week.

Pakistan’s foreign exchange reserves also recorded a significant increase. Total reserves rose to $17.1 billion from $15.9 billion a week earlier, mainly driven by a $1.2 billion increase in SBP-held reserves. Import cover also improved to 2.7 months.

Government debt auctions witnessed strong investor participation during the week. According to AHL, the government exceeded its Pakistan Investment Bond (PIB) auction target by raising Rs652 billion against a target of Rs350 billion, with most participation concentrated in the 15-year PIB.

Similarly, Treasury Bill (T-Bill) auctions attracted strong demand, with the government raising Rs702 billion against a target of Rs450 billion. Yields increased across all maturities.

However, external account indicators remained mixed. Pakistan recorded a current account deficit of $252 million during 10MFY26 compared with a surplus of $1.662 billion during the same period last year.

In April 2026 alone, the country posted a current account deficit of $324 million compared with a surplus of $1.134 billion in March 2026 and a deficit of $12 million in April 2025, indicating month-on-month volatility in external sector flows.

Overall, the rupee’s performance during the week reflected relative stability supported by stronger reserve levels, stable financing conditions and sustained investor participation in government debt markets.

Credit: INP-WealthPk