By Moaaz Manzoor

The Pakistani rupee remained broadly stable against major international currencies during the fourth week of June, posting a slight gain against the US dollar as easing external-sector pressures, lower Treasury-bill yields and continued improvement in macroeconomic conditions helped sustain confidence in the local currency.

According to the State Bank of Pakistan (SBP), the US dollar stood at Rs277.9345 for buying and Rs278.3596 for selling on June 22. The greenback remained largely range-bound throughout the week, closing at Rs277.9214 and Rs278.3465, respectively, on June 24, reflecting a marginal appreciation in the rupee.

The euro weakened during the period, declining from Rs318.4166 for buying and Rs318.8969 for selling on June 22 to Rs315.8304 and Rs316.3113, respectively, on June 24. The British pound also eased, moving from Rs367.1266 for buying and Rs367.6909 for selling to Rs366.6344 and Rs367.2159 over the same period.

Regional currencies showed only limited movement. The Saudi riyal edged down from Rs74.0518 for buying and Rs74.1618 for selling on June 22 to Rs74.0400 and Rs74.1491, respectively, by June 24. Similarly, the Chinese yuan weakened modestly, falling from Rs41.0107 for buying and Rs41.0632 for selling to Rs40.8620 and Rs40.9144. Meanwhile, the Japanese yen remained virtually unchanged, closing the week at Rs1.7196 for buying and Rs1.7221 for selling.

Trading activity remained limited during the week as financial markets stayed closed on June 25 and 26 in observance of the Ashura holidays.

However, the rupee's stability coincided with continued improvement in Pakistan's financial and external-sector outlook. According to Arif Habib Limited (AHL), the local currency appreciated by 0.02% week-on-week against the US dollar, supported by manageable external financing pressures and improving investor confidence.

Meanwhile, domestic money market conditions also reflected improving sentiment. In the latest Treasury-bill auction, the government raised Rs1.243 trillion against a target of Rs1.200 trillion, while cut-off yields declined across all maturities by 39 to 115 basis points.

Similarly, the week's macroeconomic developments were further supported by policy measures aimed at encouraging exports. Under the approved Finance Bill 2026, the government abolished the Super Tax for companies deriving more than 80% of their turnover from exports, a move expected to improve the competitiveness of export-oriented industries and support foreign exchange earnings over the medium term.

Overall, the rupee's performance during the fourth week of June reflected a stable foreign exchange market supported by improving macroeconomic fundamentals, favourable policy developments and easing financial conditions. While global uncertainties continue to pose risks, strengthening external-sector indicators and growing expectations of lower interest rates helped keep the local currency broadly stable against both major and regional currencies.

Credit: INP-WealthPk