Moaaz Manzoor

The Pakistani rupee showed mixed trends against major international currencies during January, strengthening against the US dollar and Saudi riyal but weakening against the euro, British pound, Japanese yen and Chinese yuan amid shifting market dynamics. According to the State Bank of Pakistan, the US dollar maintained a gradual downward trend against the rupee throughout the month.

It opened on January 2 at 279.8567 (buying) and 280.2816 (selling) and eased to 279.8067 and 280.2318 by January 6. The decline continued mid-month, with rates at 279.7337 and 280.1588 on January 13 and 279.6395 and 280.0646 on January 20. By January 27, the dollar stood at 279.5455 and 279.9706 before closing the month on January 30 at 279.4902 and 279.9153, reflecting a net decline of about 0.37 in both buying and selling rates.

In contrast, the euro recorded an overall upward movement against the rupee after early weakness. The single currency opened at 328.8348 (buying) and 329.3321 (selling) on January 2, slipped to 328.3317 and 328.8240 by January 6 and further to 326.1672 and 326.6606 on January 13.

A mild recovery followed on January 20 at 326.2319 and 326.7255, before a sharp rise later in the month to 331.9721 and 332.4591 on January 27. The euro ended January higher at 333.2561 and 333.7658 on January 30, marking a net increase of around 4.42 in buying and 4.43 in selling rates. The British pound also showed volatility but strengthened overall. It opened the month at 377.0235 (buying) and 377.6209 (selling) on January 2 and climbed to 379.2800 and 379.8498 by January 6.

The pound weakened mid-month, falling to 376.7826 and 377.3607 on January 13 and further to 375.7859 and 376.3654 on January 20. However, it rebounded sharply toward the end of the month, rising to 382.4474 and 383.0179 on January 27 and closing at 384.4076 and 384.9992 on January 30, posting a net gain of roughly 7.38.

The Saudi riyal continued its steady downward path throughout January. It opened at 74.6213 (buying) and 74.7305 (selling) on January 2 and edged lower to 74.6025 and 74.7117 by January 6. The decline continued through mid-month, with rates at 74.5893 and 74.6975 on January 13 and 74.5668 and 74.6760 on January 20.

By January 27, the riyal stood at 74.5424 and 74.6481 and closed the month at 74.5177 and 74.6269, reflecting a net decrease of about 0.10. The Japanese yen experienced fluctuations but ended January stronger against the rupee. It opened at 1.7838 (buying) and 1.7864 (selling) on January 2 and rose to 1.8159 and 1.8185 by January 30, resulting in a net gain of approximately 0.032.

The Chinese yuan recorded a consistent upward trend against the rupee. It opened January at 40.0550 (buying) and 40.1068 (selling) and rose steadily through the month to close at 40.2521 and 40.3037 on January 30, marking a net increase of about 0.197.

According to Arif Habib Limited, the real effective exchange rate (REER) fell to 103.73 in December 2025 from 104.76 in November, reflecting a 0.98 percent month-on-month decline, while rising 5.81 percent in FY26 to date and 0.06 percent in calendar year 2025.

Speaking with Wealth Pakistan, Syed Zafar Abbas, Manager at Zahid Latif Khan Securities, said there was considerable pressure on the US dollar. He noted that the dollar remained depressed while the Pakistani rupee continued to appreciate, adding that these developments were positive for the currency outlook.

Credit: INP-WealthPk