Pakistani rupee gains slightly against dollar in early trade

The Pakistani rupee inched higher against the US dollar during early trading on Tuesday, recording a modest gain of 0.07 percent. In the inter-bank market, the currency opened at Rs280.42, marking an improvement of 19 paisa over Monday’s close of Rs280.61.

Recent USD to PKR exchange rate

The State Bank of Pakistan reported that the PKR had gained 1.35 paisa in Monday’s session, settling at Rs280.61 per USD. During the day, the Pakistani currency traded between an intraday high of 280.40 and a low of 281.65. In the open market, the dollar was quoted at Rs280.80 for buying and Rs281.65 for selling.

PKR’s performance against other foreign currencies

The local unit showed mixed movements against major international currencies on Monday. It rose slightly against the Saudi Riyal to 74.82 and the UAE Dirham to 76.40. The rupee gained 1.87 rupees against the Swiss franc, closing at 347.07, and strengthened by 40.84 paisa versus the euro at 323.46. On the other hand, it lost ground against the British pound, dropping 64.18 paisa to 367.71, and weakened marginally against the Japanese yen and Chinese yuan.

Global factors influencing the rupee

Analysts say the rupee’s modest recovery comes amid a broadly steady US dollar, which has been under pressure as investors reassess the likelihood of Federal Reserve interest rate cuts next month. Fed Governor Christopher Waller suggested that the labour market may be soft enough to justify a quarter-point rate reduction in December, though further action will depend on pending economic data delayed by the recent 43-day government shutdown.

Waller’s comments echoed remarks from New York Fed President John Williams last week, shifting market expectations sharply. Traders now see an 81 percent chance of a rate cut in December, up from 42 percent just a week ago.

Despite these developments, global currency markets remain cautious as the Fed continues to evaluate economic conditions. The dollar index, which measures the US currency against major rivals, was steady at 100.2 in early trading.

During the current fiscal year, the rupee has strengthened by 3.16 rupees or 1.12 percent against the dollar, although it has weakened by 2.06 rupees or 0.73 percent so far in 2025.