Moaaz Manzoor

The Pakistani rupee remained largely stable throughout the week, showing only mild fluctuations against major currencies as market sentiment stayed calm amid steady inflows and encouraging external account indicators.

According to State Bank of Pakistan (SBP) data, the US dollar traded within a narrow band across the week. It opened on Monday at a buying rate of 280.4518 and selling at 280.8769, slipped slightly mid-week, and closed on Friday at 280.3567 (buying) and 280.7818 (selling). The movement reflected relative exchange-rate stability consistent with broader market expectations.

The euro also traded in a tight range, with the buying rate easing from 325.4513 on Monday to 323.5521 on Friday. The selling rate moved from 325.9385 to 324.0405 over the same period. The British pound followed a similar pattern, softening from 368.9498 buying on Monday to 366.8513 by Friday, while the selling rate edged down from 369.5182 to 367.4142.

The Chinese yuan showed only marginal adjustments, with the buying rate moving from 39.4778 on Monday to 39.4215 on Friday. Selling rates shifted from 39.5285 to 39.4726. The Saudi riyal, which typically mirrors the dollar, recorded minimal movement as well: buying eased from 74.7827 on Monday to 74.7510 on Friday, while selling edged from 74.8919 to 74.8602.

The Japanese yen continued to trade near multi-month lows against the rupee. Buying fell from 1.8130 on Monday to 1.7837 by Friday, while the selling rate slipped from 1.8156 to 1.7863. The UAE dirham remained steady, with buying at 76.3551 on Monday and 76.3385 on Friday, while selling moved only slightly from 76.4649 to 76.4480.

Brokerage firm AKD Securities noted that Pakistan’s current account posted a US$112 million deficit in October 2025, compared with a US$296 million surplus in the same month last year. IT exports reached US$386 million in October 2025, up 17% year-on-year, marking the highest monthly level on record.

SBP-held foreign exchange reserves increased by US$27 million week-on-week, reaching US$14.6 billion as of November 14. The rupee appreciated 0.04% week-on-week, closing the week at Rs280.62 per US dollar. Arif Habib Limited reported that the real effective exchange rate (REER) rose to 103.95 in October 2025, up 2.18% month-on-month and 6.04% for the fiscal year-to-date.

Net foreign direct investment reached US$179 million in October 2025, though inflows during July–October (4MFY26) fell 26% year-on-year to US$748 million. The rupee remained stable against the dollar, closing at Rs280.62.

Credit: INP-WealthPk