PKR gains marginally against US dollar in early trade

The Pakistani rupee (PKR) showed signs of recovery on Monday, strengthening slightly against the US dollar (USD) during the opening hours of trading in the inter-bank market.

The local currency traded at Rs280.27 per dollar, reflecting a gain of 25 paisa as market participants reacted to regional and international developments.

Rupee edges higher after modest weekly gain

Last week, the rupee continued its slow upward trajectory, recording a marginal gain of 10 paisa or 0.04 percent against the greenback. It closed the week at Rs280.52, slightly stronger than the previous week’s close of Rs280.62, according to the State Bank of Pakistan.

The currency has appreciated by Rs3.00 or 1.07 percent against the dollar since the start of the current fiscal year, while showing a year-to-date decline of Rs2.21 or 0.79 percent in the calendar year.

Mixed international cues influence trading

Global currency markets also influenced the rupee’s movement. The Japanese yen rose on Monday after Bank of Japan Governor Kazuo Ueda suggested a potential rate hike in the near term, while the US dollar began the month on the back foot amid growing expectations of a possible rate cut.

Domestically, Thursday’s interbank session saw the rupee gain 0.90 paisa to settle at Rs280.76 per dollar. During the session, the currency traded within a narrow range, with both the intraday high and low at 280.75. In the open market, the dollar was quoted at Rs281 for buying and Rs281.80 for selling.

Performance against other major currencies

The rupee showed mixed results against other global currencies. It strengthened slightly against the UAE Dirham and Saudi Riyal, closing at Rs76.44 and Rs74.86 respectively, while registering minor gains against the British Pound and Japanese Yen.

Conversely, it lost ground against the Chinese Yuan, Euro, and Swiss franc, with the sharpest decline seen against the Swiss franc, dropping Rs1.84 to close at Rs352.90.