Moaaz Manzoor

The Pakistani rupee remained broadly stable during the fourth week of December, posting only marginal movements against major global currencies as improved reserve buffers and easing yields supported market confidence. According to the State Bank of Pakistan, the rupee opened the week on Monday, December 22, at 279.9539 (buying) and 280.3790 (selling) against the US dollar. It remained largely unchanged on Tuesday at 279.9567 and 280.3818, before trading at 279.9535 and 280.3786 on Wednesday.

The local currency edged slightly firmer toward the end of the week, closing on Friday at 279.9236 and 280.3487, reflecting a mild appreciation. In the euro market, the rupee opened at 328.0049 (buying) and 328.4982 (selling) on Monday, rose to 329.6387 and 330.1322 on Tuesday, and strengthened further midweek at 330.1098 and 330.6029. The single currency eased slightly by the end of the week, with the rupee closing at 329.7667 and 330.2707 on Friday.

The British pound recorded comparatively firmer levels throughout the week. It opened at 375.0160 and 375.5936 on Monday, climbed to 377.5643 and 378.1576 on Tuesday, and strengthened further on Wednesday at 378.2729 and 378.8659. The rupee recovered modestly toward the end of the week, closing at 377.7412 and 378.3092. The Chinese yuan traded within a narrow range during the period. It opened at 39.7702 and 39.8211 on Monday, moved to 39.8322 and 39.8832 on Tuesday, and strengthened slightly midweek at 39.8835 and 39.9346.

By Friday, the yuan stood at 39.9300 and 39.9814, reflecting limited volatility. Similarly, the Saudi riyal remained stable, fluctuating within a tight band from 74.6383 and 74.7465 at the start of the week to 74.6315 and 74.7387 by Friday. The Japanese yen also showed limited movement, opening at 1.7791 and 1.7817 on Monday, rising to 1.7935 and 1.7961 on Tuesday, and closing the week at 1.7920 and 1.7946.

Brokerage houses attributed the rupee’s stability to improved external buffers and easing financial conditions. AKD Securities noted that the State Bank of Pakistan’s foreign exchange reserves increased by USD16 million week-on-week to USD15.9 billion as of December 19. The brokerage added that the rupee appreciated 0.03% week-on-week, closing at PKR280.17 per US dollar.

AKD further highlighted that treasury bill yields declined by 36 basis points, 50 basis points, 52 basis points, and 78 basis points across the 1-month, 3-month, 6-month, and 12-month tenors, respectively, in the first auction following the surprise 50-basis-point policy rate cut. Analysts said the rupee’s steady performance reflects strengthened reserve buffers, controlled demand for foreign exchange, and a supportive monetary environment, with stability expected to persist in the near term barring any major external shocks.

Credit: INP-WealthPk