Moaaz Manzoor

The Pakistani rupee remained largely stable during the third trading week of January, posting only marginal movements against major global currencies as easing yields, adequate reserve buffers and subdued dollar demand kept the market range-bound.

According to the State Bank of Pakistan, the rupee opened the week on Monday, January 19, at 279.6449 (buying) and 280.0700 (selling) against the US dollar. It traded near similar levels on Tuesday at 279.6395 and 280.0646, and remained steady mid-week at 279.6309 and 280.0560 on Wednesday. The currency showed little change on Thursday at 279.6035 and 280.0286, before closing the week on Friday, January 23, at 279.5952 (buying) and 280.0203 (selling), reflecting a modest 0.03% week-on-week appreciation.

In the euro market, the rupee opened at 325.2359 (buying) and 325.7240 (selling) on Monday. It moved within a narrow range during the week, trading at 326.2319 and 326.7255 on Tuesday and 327.6843 and 328.1796 on Wednesday. After moderating slightly on Thursday, the euro closed the week at 328.2726 (buying) and 328.7610 (selling), indicating contained but upward movement over the period.

The British pound showed comparatively firmer levels. It opened at 374.6179 (buying) and 375.1817 (selling) on Monday, rose to 375.7859 and 376.3654 on Tuesday, and traded near 375.6954 and 376.2736 mid-week. After easing slightly on Thursday, the pound ended the week stronger at 377.1309 (buying) and 377.7112 (selling).

The Chinese yuan traded within a narrow band throughout the week. It opened at 40.1935 (buying) and 40.2452 (selling) on Monday, edged up marginally on Tuesday, and hovered around 40.1777 and 40.2292 mid-week. By Friday, the yuan stood at 40.1794 and 40.2307, reflecting subdued volatility.

Similarly, the Saudi riyal remained stable, fluctuating in a tight range from 74.5666 (buying) and 74.6758 (selling) at the start of the week to 74.5566 and 74.6652 by Friday. The Japanese yen also recorded minor changes, opening at 1.7715 (buying) and 1.7741 (selling) on Monday, easing mid-week and closing the week at 1.7619 and 1.7645.

Brokerage houses attributed the rupee’s steady performance to improving financial conditions and supportive liquidity. Arif Habib Limited noted that State Bank of Pakistan-held foreign exchange reserves rose by 15.9 million dollars to 16.1 billion dollars during the week, while the rupee appreciated 0.03% week-on-week to close at 279.86 rupees per US dollar.

The brokerage added that the real effective exchange rate declined to 103.73 in December 2025 from 104.76 in November 2025, reflecting a 0.98% month-on-month decrease, while maintaining a 5.81% gain for FY26 to date and ending calendar year 2025 up a marginal 0.06%.

AKD Securities also observed that the current account deficit stood at 244 million dollars in December 2025, while foreign direct investment outflows were recorded at 135 million dollars. The brokerage similarly reported a 0.03% week-on-week appreciation in the rupee, with the currency closing at 279.86 rupees per US dollar.

Analysts said the rupee’s calm performance reflects strengthened reserve buffers, controlled foreign exchange demand and easing financial conditions, with expectations that stability may persist in the near term barring any major external shocks.

Credit: INP-WealthPk