Moaaz Manzoor

The Pakistani rupee held firm through August, with weekly interbank closings showing only mild shifts against major currencies as stronger inflows and tighter regulation kept the market steady.

Against the US dollar, the rupee opened at 282.5226 (buying) and 282.9544 (selling) in the first week, moved to 282.2451 and 282.6769 in the second, and slipped to 281.8561 and 282.2880 in the third. It settled at 281.6892 and 282.1211 in the fourth week before ending the month at 281.5620 and 281.9938.

In the euro market, the rates climbed from 322.8189 and 323.3058 in the first week to 328.9041 and 329.4005 in the second, held at 328.8689 and 329.3697 in the third, dropped to 326.4313 and 326.9297 in the fourth, and closed at 328.4419 and 328.9426 in the final session.

Sterling advanced from 372.9924 and 373.5681 in the opening week to 379.1016 and 379.6981 in the second, peaking at 381.9297 and 382.5079 in the third. The fourth week saw a dip to 377.4064 and 377.9911, before the currency regained ground to 380.0362 and 380.6250 at the month’s end.

The Saudi riyal hovered narrowly, slipping from 75.3157 and 75.4259 in the first week to 75.0368 and 75.1479 in the last. The Chinese yuan showed a similar path starting at 39.1914 and 39.2440, strengthening to 39.3015 and 39.3527 in the second week, easing mid-month, and finishing stronger at 39.5142 and 39.5671.

Reserves also inched higher. Central bank holdings rose by $18 million to $14.274 billion by late August; total liquid reserves added $47 million to $19.618 billion. Market watchers attributed the stability to improving inflows and tighter enforcement.

Awais Ashraf, Director of Research at AKD Securities, told Wealth Pakistan that stronger remittances, higher exports, and lower external repayments were supporting the currency.

Syed Zafar Abbas, Manager at Zahid Latif Khan Securities, said measures under the Special Investment Facilitation Council had curbed dollar smuggling, keeping speculation in check. He added that with remittances picking up and exports softer, the rupee still showed little change between July and August, a momentum he expected to continue.

Analysts believe that with robust inflows, rising reserves, and subdued speculative activity, the rupee is poised to enter September on a stronger footing, provided external shocks remain at bay.

Credit: INP-WealthPk