The Pakistani Rupee (PKR) showed a modest appreciation against the US Dollar (USD) during Friday’s interbank session, closing at PKR 278.51 per USD. This represents a slight improvement from the previous session’s closing rate of PKR 278.59 per USD. Throughout the trading day, the PKR experienced an intraday high bid of PKR 278.6 and a low ask of PKR 278.4. In the open market, exchange companies quoted the dollar at PKR 277.66 for buying and PKR 280.25 for selling.
Despite this daily gain, the PKR’s performance on a weekly basis revealed a depreciation of 0.31 rupees against the USD. This highlights the currency’s ongoing volatility and the various factors influencing its exchange rate movements.
The PKR’s performance against other major currencies displayed a mixed trend, reflecting the dynamic nature of the global currency market. Here’s a closer look at the PKR’s movement against several key currencies:
Saudi Riyal (SAR): The PKR weakened slightly against the Saudi Riyal, closing at PKR 74.23. This marked a depreciation of 3.18 paisa from the previous value of PKR 74.27.
U.A.E Dirham (AED): Similarly, the PKR saw a decrease against the U.A.E Dirham, dropping by 2.34 paisa to settle at PKR 75.85 from the previous day’s PKR 75.82.
British Pound (GBP): The PKR experienced a significant drop against the British Pound, depreciating by 1.71 rupees. It closed at PKR 354.56 compared to the previous session’s PKR 356.26.
Swiss Franc (CHF): In contrast, the PKR strengthened against the Swiss Franc, gaining 69.25 paisa. It closed at PKR 311.95, up from PKR 311.26 in the previous session.
Japanese Yen (JPY): The PKR saw a slight gain against the Japanese Yen, appreciating by 0.36 paisa to close at PKR 1.7677 compared to the previous day’s PKR 1.7713.
Euro (EUR): The PKR also strengthened notably against the Euro, gaining 3.06 rupees. It closed at PKR 298.23, up from PKR 301.28.
Chinese Yuan (CNY): Conversely, the PKR depreciated slightly against the Chinese Yuan, losing 3.15 paisa to close at PKR 38.39 from the previous session’s PKR 38.42.
The fluctuating performance of the PKR against various currencies highlights the complex and dynamic nature of the currency market. Several factors contribute to these movements, including international trade flows, foreign exchange reserves, monetary policies, and geopolitical developments.
The slight appreciation of the PKR against the USD can be attributed to various macroeconomic factors, including market interventions by the State Bank of Pakistan (SBP), foreign exchange inflows, and investor sentiment. However, the weekly depreciation underscores the persistent challenges faced by the PKR, including external debt obligations and trade imbalances.
For importers, exporters, investors, and policymakers, understanding these currency fluctuations is crucial for making informed decisions. Importers may benefit from a stronger PKR as it reduces the cost of foreign goods and services. Conversely, exporters might face challenges with a stronger PKR as it can make Pakistani goods less competitive in the global market.
Investors, particularly those involved in the forex market, closely monitor these movements to capitalize on trading opportunities. Policymakers, on the other hand, strive to maintain a stable exchange rate to foster economic stability and growth.
