By Moaaz Manzoor

The Pakistani rupee remained broadly stable against major international currencies during the second week of June, posting a slight gain against the US dollar amid improving external-sector indicators and a steady foreign exchange market.

According to the State Bank of Pakistan (SBP), the US dollar stood at Rs278.1239 for buying and Rs278.5490 for selling on June 8. It gradually eased during the week, closing at Rs278.0316 and Rs278.4567, respectively, on June 12, reflecting a modest appreciation of the local currency.

The euro recorded limited fluctuations during the week. It opened at Rs320.5586 for buying and Rs321.0338 for selling on June 8 before closing at Rs321.6175 and Rs322.0997, respectively, on June 12. The British pound followed a similar pattern, moving from Rs370.8221 and Rs371.3730 to Rs372.6949 and Rs373.2697 over the same period.

Regional currencies also remained largely stable. The Saudi riyal edged down slightly from Rs74.0749 for buying and Rs74.1793 for selling on June 8 to Rs74.0684 and Rs74.1770 on June 12. The UAE dirham also showed minimal movement, ending the week at Rs75.7361 for buying and Rs75.8437 for selling.

The Chinese yuan posted modest gains during the week, rising from Rs41.0110 for buying and Rs41.0620 for selling on June 8 to Rs41.1195 and Rs41.1719, respectively, by June 12. Meanwhile, the Japanese yen remained almost unchanged, closing the week at Rs1.7343 for buying and Rs1.7369 for selling.

The rupee's relative stability coincided with improving external-sector indicators. According to the SBP, workers' remittances surged 15% year-on-year and 20% month-on-month to $4.3 billion in May 2026. During the first 11 months of FY26, cumulative remittances increased 9% to $38.1 billion, providing continued support to foreign exchange inflows.

Pakistan's foreign exchange position also strengthened during the period. Total liquid foreign exchange reserves increased by $35.7 million to $22.67 billion in the week ended June 5, helping reinforce confidence in the country's external account and supporting exchange-rate stability.

Recent economic data further pointed to improving macroeconomic conditions. The Economic Survey 2025-26 showed that Pakistan's economy expanded by 3.7% during FY26, supported by stronger performance in the agriculture and services sectors. The survey also reported an increase in per capita income to $1,901 from $1,751 a year earlier.

At the same time, Pakistan's total public debt reached Rs83.29 trillion by the end of March FY26, highlighting the government's continuing financing requirements despite efforts to strengthen fiscal management and improve debt sustainability.

Inflationary pressures, however, remain a concern. The Sensitive Price Indicator (SPI), which tracks weekly inflation, rose 0.16% during the week ended June 11, indicating that price pressures continue to affect household budgets and business costs.

Overall, the rupee's performance during the second week of June reflected a balanced foreign exchange market supported by stronger remittance inflows, rising foreign exchange reserves and improving economic indicators. While inflation and debt-related challenges persist, stable external-sector fundamentals helped keep currency movements within a narrow range against major global and regional currencies.

Credit: INP-WealthPk