Moaaz Manzoor

The Pakistani rupee continued its steady gains against major global currencies last week, supported by sustained remittance inflows and a steady build-up in foreign exchange reserves, which helped maintain stability in the local currency despite global market volatility.

According to data from the State Bank of Pakistan (SBP), the rupee remained largely stable against the US dollar between October 6 and 10, 2025. The greenback opened the week at 281.0415 (buying) and 281.4733 (selling) and moved narrowly throughout the sessions. On October 7, it slipped slightly to 280.9751 and 281.4069, rebounded marginally the next day to 280.9861 and 281.4179, before easing again to 280.9741 and 281.4060 on October 9, and finally closing the week at 280.9616 and 281.3935.

The Chinese yuan mirrored this cautious movement, opening at 39.4520 and 39.5051 and edging lower to close at 39.4269 and 39.4783 by October 10. The Saudi riyal also held steady, moving slightly from 74.9381–75.0472 at the start of the week to 74.9108–75.0224 at the close.

Among major European currencies, the euro saw the sharpest fall, dropping from 329.1586–329.6578 on October 6 to 325.0717–325.5714 by October 10. The British pound followed a similar pattern, weakening from 377.8570–378.4800 to 373.8060–374.3918, while the Japanese yen recorded only mild changes, edging down from 1.8717–1.8744 to 1.8393–1.8420.

According to Arif Habib Limited (AHL), the rupee appreciated 0.03% week-on-week (WoW), closing at 281.17 per USD. The brokerage attributed the slight uptick to firm remittance inflows and improved external account stability. Workers’ remittances reached USD 3.18 billion in September 2025, up 11% year-on-year (YoY) from USD 2.9 billion in the same month last year. On a monthly basis, inflows rose 1.45% while during the first quarter of FY26, remittances increased 8% YoY to USD 9.6 billion.

Pakistan’s total foreign exchange reserves climbed to USD 19.81 billion, marking a week-on-week increase of USD 13.7 million. Of this, the SBP’s holdings stood at USD 14.42 billion, up USD 20 million from the previous week, while commercial banks’ reserves were recorded at USD 5.39 billion.

According to EK Global Capital, despite continued external debt repayments, the country’s reserves have remained resilient, reflecting steady inflows and improved foreign-exchange management. Analysts said the rupee’s stability underscores growing confidence in Pakistan’s external sector, supported by remittance momentum and disciplined monetary policy.

Credit: INP-WealthPk