Moaaz Manzoor

The Pakistani rupee remained largely stable during the first full trading week of January, posting only marginal movements against major global currencies as improved reserve buffers, easing yields, and strong market participation supported market sentiment. According to the State Bank of Pakistan (SBP), the rupee opened the week on Monday, January 5, at 279.8535 (buying) and 280.2786 (selling) against the US dollar. It strengthened slightly on Tuesday to 279.8067 and 280.2318, before holding near similar levels on Wednesday at 279.8035 and 280.2286.

The currency remained range-bound through Thursday at 279.7891 and 280.2142, and closed the week on Friday, January 9, at 279.7503 (buying) and 280.1754 (selling), marking a modest week-on-week appreciation. In the euro market, the rupee opened at 327.0029 (buying) and 327.4970 (selling) on Monday. It weakened on Tuesday to 328.3317 and 328.8240, before easing midweek to 327.0765 and 327.5730 on Wednesday. The single currency softened further on Thursday to 326.7774 and 327.2669, and closed the week at 325.9600 and 326.4532, indicating limited volatility overall.

The British pound recorded comparatively firmer levels earlier in the week. It opened at 375.7871 and 376.3693 on Monday and climbed to 379.2800 and 379.8498 on Tuesday, before moderating to 377.7964 and 378.3644 on Wednesday. The rupee regained some ground later in the week, with the pound quoted at 376.4364 and 377.0297 on Thursday, and closing at 375.7138 and 376.2974 on Friday. The Chinese yuan traded within a narrow band throughout the week.

It opened at 40.1174 (buying) and 40.1688 (selling), edged marginally on Tuesday, and hovered around 40.0623 and 40.1132 midweek. By Friday, the yuan stood at 40.1006 and 40.1524, reflecting subdued movement. Similarly, the Saudi riyal remained stable, fluctuating in a tight range from 74.6161 and 74.7243 at the start of the week to 74.5971 and 74.7050 by Friday. The Japanese yen also showed limited movement, opening at 1.7811 and 1.7837, rising slightly midweek, and closing the week at 1.7780 and 1.7806.

Brokerage houses attributed the rupee’s calm performance to improving external buffers and supportive monetary conditions. Arif Habib Limited noted that the rupee appreciated 0.03% week-on-week, closing at PKR280.02 per US dollar. The brokerage added that SBP-held foreign exchange reserves rose by USD140.6 million to USD16.1 billion, while commercial bank reserves increased by USD39.6 million to USD5.1 billion during the week.

It also highlighted that the government raised PKR979.3 billion through a Treasury-bill auction against a target of PKR850 billion, with yields declining across all tenors by 28.6 to 33.8 basis points amid strong participation of PKR2,554.6 billion. AKD Securities similarly observed that the rupee appreciated 0.03% week-on-week against the greenback, closing the week at PKR280.02 per US dollar.

Analysts said the rupee’s steady performance reflects strengthened reserve buffers, controlled demand for foreign exchange, and easing financial conditions, with expectations that stability may persist in the near term barring any major external shocks.

Credit: INP-WealthPk