Moaaz Manzoor

The Pakistani rupee maintained its stability during the previous week, reflecting cautious optimism in the currency market as foreign exchange reserves inched higher and supportive inflows from remittances and exports provided additional strength.

According to State Bank of Pakistan (SBP) data, the rupee hovered around 281 against the US dollar throughout the week. On October 1, the greenback was quoted at 281.0732 (buying) and 281.5051 (selling). A day later, on October 2, the dollar eased slightly to 281.0431 and 281.4750. By the close of the week on October 3, the dollar stood at 281.0290 and 281.4608, marking the currency’s marginal appreciation and continuation of a steady trend.

Other major currencies also mirrored the rupee’s stable trajectory. The Chinese yuan was recorded at 39.4793 and 39.5311 on October 1, shifting to 39.4742 and 39.5259 on October 2, before closing at 39.4715 and 39.5233 on October 3.

The euro, which opened the week at 330.4994 and 331.0055 on October 1, slipped to 329.9590 and 330.4620 on October 2 and further softened to 329.5157 and 330.0192 on October 3. Similarly, the British pound was quoted at 378.4221 and 379.0087 on October 1, rising to 378.9314 and 379.5106 on October 2, before easing to 377.8013 and 378.3801 on October 3.

The Saudi riyal also remained consistent, beginning at 74.9424 and 75.0521 on October 1, moving to 74.9340 and 75.0428 on October 2, and ending the week at 74.9290 and 75.0392. The UAE dirham posted minor variations, recorded at 76.5316 and 76.6427 on October 1, dipping to 76.5203 and 76.6302 on October 2, and closing at 76.5116 and 76.6209 on October 3.

Among other currencies, the Swiss franc slipped from 353.8191 and 354.3779 on October 1 to 352.7370 and 353.3061 on October 2, and further to 352.4054 and 352.9565 on October 3. The Japanese yen showed little change, moving from 1.9073 and 1.9102 on October 1 to 1.9100 and 1.9129 on October 2, and 1.9040 and 1.9068 on October 3.

According to Arif Habib Limited, Pakistan’s foreign exchange reserves rose to USD 19.80 billion (+USD 3.4 million WoW), with SBP reserves standing at USD 14.40 billion (+USD 21 million WoW). The brokerage noted that the rupee appreciated marginally by 0.03% WoW, closing at 281.37 against the dollar.

Commenting on the trend, Muhammad Awais Ashraf, Head of Research at AKD Securities, said: “Strong remittance flows, slight pickup in exports, and lower debt repayments in dollars are keeping the rupee strong.” Overall, the rupee’s week-long performance highlighted a balanced combination of reserve build-up, steady inflows, and restrained demand, positioning the currency on a path of cautious stability.

Credit: INP-WealthPk