By Moaaz Manzoor

The Pakistani rupee remained largely stable against major international currencies during February, posting minor fluctuations but maintaining overall strength against the US dollar amid improving macroeconomic indicators and continued policy support, reports Wealth Pakistan.

According to the State Bank of Pakistan (SBP), the weighted average customer exchange rate for the US dollar stood at 279.4729 (buying) and 279.8980 (selling) on February 2. The dollar eased to 279.4100 and 279.8351 by February 6, further declined to 279.3413 and 279.7664 on February 13, and stood at 279.2952 and 279.7203 on February 20. By February 27, the greenback closed at 279.1875 (buying) and 279.6126 (selling), reflecting a slight overall appreciation of the rupee during the month.

The euro showed mixed movement. It opened at 331.3678 (buying) and 331.8660 (selling) on February 2, slipped to 329.5772 and 330.0618 by February 6, rebounded to 331.3156 and 331.8221 on February 13, declined again to 328.2914 and 328.7833 on February 20, and closed at 329.6939 and 330.1920 on February 27.

The British pound also fluctuated. It began February at 382.2152 (buying) and 382.7955 (selling), fell to 379.0200 and 379.6078 by February 6, edged up to 380.1494 and 380.7564 on February 13, declined to 375.4288 and 376.0084 on February 20, and ended the month at 376.6164 and 377.2008.

The Saudi riyal remained broadly stable, opening at 74.5103 (buying) and 74.6189 (selling) and gradually easing to 74.4397 and 74.5479 by February 27. The Chinese yuan moved within a narrow band, rising from 40.2328 and 40.2843 to 40.7608 and 40.8132 over the same period. Meanwhile, the Japanese yen showed slight volatility, opening at 1.8051 and 1.8078 and closing at 1.7927 and 1.7954.

Macroeconomic indicators released during the month supported currency stability. According to Arif Habib Limited, Consumer Price Index (CPI) inflation for January 2026 stood at 5.8% year-on-year compared to 5.6% in December 2025. A current account surplus of $121 million was recorded in January 2026, compared to deficits of $393 million in January 2025 and $265 million in December 2025. However, during the first seven months of fiscal year 2026 (7MFY26), the country posted a cumulative current account deficit of $1,074 million compared to a surplus of $564 million in the same period last year.

Remittances rose 15% year-on-year to $3.5 billion in January 2026 compared to $3.0 billion a year earlier, although they declined 4% month-on-month. The Real Effective Exchange Rate (REER) stood at 103.29 in December 2025 compared to 103.73 in November 2025, while Large Scale Manufacturing Index (LSMI) output grew 0.4% year-on-year and 9.3% month-on-month in December 2025.

Speaking with Wealth Pakistan, Syed Zafar Abbas, Manager at Zahid Latif Khan Securities, said the rupee has remained stable for more than three years due to consistent economic policies and oversight of dollar flows. He noted that the involvement of the Special Investment Facilitation Council (SIFC) has helped sustain macroeconomic stability and added that the rupee’s exchange rate against the dollar has gradually improved and is expected to remain stable.

AKD Securities reported that the SBP’s net foreign exchange intervention reached $11 billion over the last 18 months as of November 2025. SBP-held foreign exchange reserves increased by $16 million week-on-week to $16.2 billion as of February 20, 2026. During the same week, the rupee appreciated by 0.03% week-on-week to close at 279.47 per US dollar.

Overall, the rupee’s February performance reflected resilience supported by controlled inflation, improved external balances, steady remittance inflows and proactive monetary management by the State Bank of Pakistan.

Credit: INP-WealthPk