Moaaz Manzoor

The Pakistani rupee remained largely stable during the second week of December, with only marginal movements against major international currencies, supported by higher foreign exchange reserves and subdued import demand. According to State Bank of Pakistan (SBP) data, the rupee opened the week on Monday, December 8, at PKR 280.1539 (buying) and PKR 280.5790 (selling) against the US dollar.

The local unit traded within a narrow band throughout the week, standing at 280.1567 and 280.5818 on Tuesday, 280.1236 and 280.5487 on Wednesday, and 280.1130 and 280.5381 on Thursday, before closing on Friday at 280.0736 and 280.4987, reflecting a slight appreciation over the period.

Against the euro, the rupee opened at 326.6613 (buying) and 327.1518 (selling) on Monday and remained relatively firm during the first half of the week. It traded at 326.3404 and 326.8334 on Tuesday and 325.8789 and 326.3759 on Wednesday, before weakening later, with rates recorded at 327.4065 and 327.9008 on Thursday.

By Friday, the rupee closed at 328.6767 and 329.1680, marking a modest depreciation against the single currency. The British pound showed a gradual upward trend during the week. The rupee opened at 373.7107 (buying) and 374.2898 (selling) on Monday, moved to 373.5244 and 374.1027 on Tuesday, and strengthened to 372.8698 and 373.4430 on Wednesday. The trend reversed in the latter part of the week, with rates rising to 374.4039 and 374.9789 on Thursday and further to 375.0932 and 375.6566 on Friday.

The Chinese yuan remained largely range-bound. The rupee opened at 39.6412 (buying) and 39.6914 (selling) on Monday and closed the week at 39.7015 and 39.7525 on Friday. Similarly, the Saudi riyal showed limited volatility, with the rupee opening at 74.6504 (buying) and 74.7595 (selling) on Monday and ending the week at 74.6355 and 74.7440 on Friday. The Japanese yen also followed a narrow trajectory.

The rupee opened at 1.8066 (buying) and 1.8093 (selling) on Monday, eased to 1.7880 and 1.7906 by Wednesday, recovered slightly on Thursday, and closed the week at 1.7983 and 1.8009 on Friday. Brokerage reports echoed the stable currency outlook. AKD Securities noted that SBP-held foreign exchange reserves increased by USD 12 million week-on-week to USD 14.6 billion as of December 5, while the rupee appreciated 0.04% over the week, closing at PKR 280.32 per US dollar.

Arif Habib Limited also highlighted continued stability in the currency market, supported by adequate reserve buffers and contained external pressures. Analysts said the rupee’s steady performance reflected strong administrative measures, improved reserve coverage and subdued import demand, adding that stability is likely to persist in the near term amid ongoing engagement with international financial institutions.

Credit: INP-WealthPk