Moaaz Manzoor

The Pakistani rupee remained largely stable during the second week of February, trading within a narrow range against major global currencies as steady foreign exchange reserves and controlled dollar demand kept the currency market calm. According to data released by the State Bank of Pakistan (SBP), the rupee showed limited movement against the US dollar during the week.

On February 9, the dollar was quoted at 279.4093 (buying) and 279.8344 (selling). The rate eased slightly to 279.3848 and 279.8099 on February 10, followed by 279.3787 and 279.8038 on February 11. On February 12, the greenback stood at 279.3670 (buying) and 279.7921 (selling), before settling at 279.3413 and 279.7664 on February 13, reflecting subdued volatility.

In the euro market, the rupee also traded within a narrow band. The single currency was quoted at 330.9205 (buying) and 331.4174 (selling) on February 9. It rose to 332.6418 and 333.1452 on February 10, edged up further to 332.8459 and 333.3539 on February 11, then eased to 331.4710 and 331.9686 on February 12, before closing at 331.3156 and 331.8221 on February 13.

The British pound remained relatively firm throughout the week. It opened at 380.3546 (buying) and 380.9363 (selling) on February 9, strengthened to 382.1194 and 382.7019 on February 10, traded at 381.7919 and 382.3851 on February 11, slipped to 380.5742 and 381.1563 on February 12, and ended at 380.1494 and 380.7564 on February 13.

The Chinese yuan recorded minor fluctuations. It was quoted at 40.3445 (buying) and 40.3963 (selling) on February 9, rose to 40.4566 and 40.5087 on February 10, stood at 40.4546 and 40.5066 on February 11, edged up to 40.5062 and 40.5581 on February 12, and settled at 40.4727 and 40.5250 on February 13.

Similarly, the Saudi riyal remained stable, moving from 74.5006 (buying) and 74.6098 (selling) on February 9 to 74.4821 and 74.5903 on February 13. The Japanese yen also showed limited volatility, opening at 1.7852 (buying) and 1.7877 (selling) on February 9 and closing at 1.8233 and 1.8260 by week’s end.

Brokerage houses attributed the rupee’s steady performance to strengthening external buffers. Arif Habib Limited (AHL) noted that SBP-held foreign exchange reserves increased by USD 20.6 million week-on-week to USD 16.18 billion, with import cover standing at 2.53 months. The brokerage added that the rupee appreciated marginally by 0.03% week-on-week to close at PKR 279.62 per US dollar.

AHL further highlighted that central government debt rose by 1.3% month-on-month to PKR 78.5 trillion as of December 2025, compared with PKR 71.6 trillion in December 2024, marking a 9.6% year-on-year increase. During the week, Moody’s revised Pakistan’s banking system outlook from positive to stable, noting that while macroeconomic indicators have improved, recovery in the operating environment remains gradual.

Remittances by overseas Pakistanis increased by 15% year-on-year to USD 3.5 billion in January 2026, up from USD 3.0 billion in January 2025, although on a month-on-month basis, remittances declined by 4%.

Meanwhile, AKD Securities Limited reported that SBP-held foreign exchange reserves increased by USD 21 million week-on-week to USD 16.2 billion as of February 6. The brokerage also noted that the rupee appreciated by 0.03% week-on-week against the greenback, closing at PKR 279.62 per US dollar.

Analysts said the rupee’s stable performance reflects improved liquidity conditions and steady reserve accumulation. They expect the local currency to remain range-bound in the near term, barring any major external shocks.

Credit: INP-WealthPk