By Moaaz Manzoor

The Pakistani rupee remained broadly stable against major international currencies during the first week of June, posting a marginal gain against the US dollar amid improving foreign exchange reserves held by the State Bank of Pakistan (SBP), reports Wealth Pakistan.

According to SBP data, the US dollar stood at Rs278.1963 for buying and Rs278.6214 for selling on June 1. The greenback eased slightly to Rs278.1886 and Rs278.6137 on June 2, followed by Rs278.1832 and Rs278.6083 on June 3. It further declined to Rs278.1398 and Rs278.5649 on June 4 before closing the week at Rs278.1321 for buying and Rs278.5572 for selling on June 5, reflecting a modest appreciation in the rupee.

The euro also weakened during the week. It stood at Rs324.1536 for buying and Rs324.6422 for selling on June 1 before declining to Rs323.8462 and Rs324.3389 on June 2. The currency further eased to Rs323.2924 and Rs323.7891 on June 3, followed by Rs322.8883 and Rs323.3757 on June 4, before closing at Rs323.0897 and Rs323.5817 on June 5.

Similarly, the British pound showed limited movement. It stood at Rs374.5193 for buying and Rs375.0949 for selling on June 1 before edging up slightly to Rs374.6516 and Rs375.2264 on June 2. The pound later eased to Rs374.2760 and Rs374.8636 on June 3 and Rs373.4591 and Rs374.0315 on June 4 before closing the week at Rs373.4861 for buying and Rs374.0695 for selling.

Among regional currencies, the Saudi riyal remained largely stable, moving from Rs74.1359 for buying and Rs74.2440 for selling on June 1 to Rs74.0873 and Rs74.1942, respectively, by June 5.

The UAE dirham also recorded only minor fluctuations. It stood at Rs75.7751 for buying and Rs75.8847 for selling on June 1 before closing at Rs75.7624 and Rs75.8674 on June 5.

The Chinese yuan remained steady with slight easing during the week. It stood at Rs41.1458 for buying and Rs41.1986 for selling on June 1 and closed at Rs41.0882 and Rs41.1410, respectively, on June 5.

Meanwhile, the Japanese yen eased marginally from Rs1.7446 for buying and Rs1.7471 for selling on June 1 to Rs1.7387 and Rs1.7413 by June 5.

Broader macroeconomic indicators also remained supportive for the rupee. According to Arif Habib Limited (AHL), the local currency remained relatively stable against the US dollar, closing at Rs278.41 per dollar compared with Rs278.50 in the previous week.

AHL noted that Pakistan recorded a trade deficit of $2.6 billion in May 2026. Exports stood at $2.7 billion during the month, up 1.3 percent year-on-year, while imports were recorded at $5.3 billion, down 6.6 percent compared with the same month last year.

Foreign exchange reserves also strengthened during the week. According to AHL, SBP-held reserves as of June 4 stood at $17.2 billion, up $43.4 million, providing import cover of 2.76 months.

Inflation, however, remained a key macroeconomic concern. The Consumer Price Index (CPI) for May 2026 stood at 11.7 percent year-on-year, the highest level since June 2024, compared with 10.9 percent in April 2026.

Overall, the rupee’s performance during the first week of June reflected relative stability, supported by stronger SBP reserves, a manageable trade deficit and steady market sentiment. However, elevated inflation and external-sector pressures are expected to remain key factors influencing the currency’s direction in the coming weeks.

Credit: INP-WealthPk