Moaaz Manzoor

The Pakistani rupee remained broadly stable during the third week of December, recording only marginal movements against major global currencies as improved foreign exchange inflows and a sharp rise in reserves supported market confidence.

According to the State Bank of Pakistan, the rupee opened the week on Monday at 280.0800 (buying) and 280.5051 (selling) against the US dollar. It edged slightly higher on Tuesday to 280.0768 and 280.5019, before firming further midweek at 280.0236 and 280.4487 on Wednesday. The trend remained largely steady on Thursday at 280.0203 and 280.4454, with the rupee closing the week on Friday at 280.0067 and 280.4318, reflecting a mild appreciation over the period.

In the euro market, the rupee showed limited volatility. It traded at 328.6395 (buying) and 329.1308 (selling) at the start of the week before moving to 329.1235 and 329.6221 on Tuesday. It eased midweek to 328.3466 and 328.8445, then traded at 328.6979 and 329.1938 on Thursday, closing the week slightly lower at 328.1022 and 328.5930.

The British pound recorded comparatively firmer levels. It opened the week at 374.2124 (buying) and 374.8059 (selling), edged up to 374.2894 and 374.8777 on Tuesday, and strengthened further to 374.7434 and 375.3203 midweek. The currency remained elevated on Thursday at 374.3595 and 374.9345, ending the week near 374.4986 and 375.0916.

The Chinese yuan traded in a narrow range throughout the week. The exchange rates were 39.7352 and 39.7861 on Monday, rising slightly to 39.7750 and 39.8260 on Tuesday, and hovering around 39.7814 and 39.8319 midweek. It eased marginally on Thursday to 39.7712 and 39.8217, before closing at 39.7748 and 39.8252.

Similarly, the Saudi riyal remained stable, fluctuating within a tight band from 74.6437 and 74.7513 at the start of the week to 74.6499 and 74.7585 by Friday. The Japanese yen also saw limited movement, trading between 1.8048 and 1.8074 early in the week and closing at 1.7945 and 1.7971, reflecting modest week-long variation.

Brokerage houses attributed the rupee’s stability to a sharp improvement in external buffers. Arif Habib Limited noted that the rupee appreciated 0.023% week-on-week to close at PKR 280.25 per US dollar, while SBP-held reserves rose by USD 1.3 billion to USD 15.9 billion during the week. The brokerage added that commercial bank reserves increased by USD 0.2 billion to USD 5.2 billion, lifting overall liquidity conditions.

Echoing this view, AKD Securities reported that the rupee gained 0.02% week-on-week against the greenback, ending the week at PKR 280.25 per US dollar, while SBP-held foreign exchange reserves climbed USD 1.3 billion following the receipt of IMF disbursements under the EFF and RSF.

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

Credit: INP-WealthPk