Moaaz Manzoor

The Pakistani rupee remained stable during the week ending September 12, as stronger remittance inflows, exports, and domestic policy measures underpinned market confidence. Interbank rates moved within a narrow band, reflecting sustained firmness against major currencies.

Against the US dollar, the rupee opened the week at 281.3850 (buying) and 281.8168 (selling) and held steady through the week, closing on September 12 at 281.3420 and 281.7738. The Saudi riyal followed a similar pattern, easing slightly from 74.9948 and 75.1059 in the opening session to 74.9893 and 75.1010 by the week’s end.

The Chinese yuan also maintained consistency, starting at 39.4526 and 39.5053, moving modestly during the midweek period, and finishing on September 12 at 39.5136 and 39.5661. The euro, however, showed more movement, rising to 331.1858 and 331.6882 on September 9 before easing midweek and eventually recovering to 330.0395 and 330.5422 at the close. The British pound displayed similar swings, opening at 380.0436 and 380.6205, dipping midweek, and ending higher at 381.4351 and 382.0136.

Analysts attributed the rupee’s performance to policy discipline and strict measures against speculative pressures. Syed Zafar Abbas, manager at Zahid Latif Khan Securities, said the Special Investment Facilitation Council (SIFC) has played a critical role in curbing dollar smuggling and stabilising the exchange rate. He noted that remittances are rising while exports, though modest, continue to support inflows, ensuring that the rupee does not face undue volatility.

Echoing this view, Awais Ashraf, research director at AKD Securities, said: “Stronger remittances, higher exports, and lower external repayments are supporting the currency.” Looking ahead, analysts said global conditions will also shape sentiment, with investors factoring in the possibility of US Federal Reserve rate cuts, which could further ease pressure on emerging market currencies, including the Pakistani rupee.

Analysts emphasised that the rupee’s stability is a result of a combination of domestic enforcement measures and external support factors. With speculative activity contained, remittances on an upward path, and global monetary policy expected to become more accommodating, the rupee enters the coming sessions on firmer ground.

Credit: INP-WealthPk