By Moaaz Manzoor
The Pakistani rupee stability provided a rare moment of calm in the first week of December, giving investors a brief respite amid ongoing economic pressures.
According to this reporter, minor ups and downs against major global currencies were seen as a sign of cautious stability, supported by improved foreign exchange reserves and modest external inflows.
Pakistani Rupee Stability in Early December
Market watchers noted that the rupee opened the week on December 1 at PKR 280.2596 (buying) and PKR 280.6847 (selling) against the US dollar.
It inched up slightly on Tuesday to 280.2067 and 280.6318, dipped midweek on Wednesday to 280.1953 and 280.6204, and held a shallow range through Thursday at 280.2003 and 280.6254.
By Friday, the currency ended at 280.1671 and 280.5922, showing a minor appreciation over the week.
Euro Market Trends Reflect Caution
The euro market mirrored this cautious trend. The rupee started at 325.0062 and 325.4965 on Monday, rose to 325.3468 and 325.8377 on Tuesday, and strengthened further on Wednesday to 326.2122 and 326.7006.
Through Thursday, it traded at 326.6325 and 327.1415, and closed the week slightly higher at 326.6509 and 327.1442 on Friday.
British Pound and Other Major Currencies
The British pound showed only mild fluctuations. It opened at 370.5558 and 371.1253 on Monday, moved slightly to 370.2559 and 370.8238 on Tuesday, and strengthened to 370.9120 and 371.4829 on Wednesday.
The upward momentum continued, with Thursday values at 373.6385 and 374.2125, and Friday holding near 373.8854 and 374.4642. Other major currencies showed similar stability. The Chinese yuan stayed in a narrow band, opening at 39.6260 and 39.6762 on Monday, remaining range-bound midweek, and closing near 39.6385 and 39.6889 on Friday.
The Saudi riyal fluctuated slightly between 74.7058 and 74.8150 at the week’s start, ending around 74.6571 and 74.7676. The Japanese yen also traded in a tight corridor, slipping from 1.8015 and 1.8042 on Monday to 1.7994 and 1.8020 on Tuesday, before rising slightly to 1.8118 and 1.8145 by Friday.
Foreign Exchange Reserves Boost Confidence
Brokerage reports confirmed the overall calm. AKD Securities noted that SBP-held foreign exchange reserves rose by $14 million week-on-week to $14.6 billion. The rupee appreciated 0.04% to close at PKR 280.42 per dollar.
Arif Habib Limited reported total liquid reserves at $19.59 billion, with commercial bank reserves stable at $5.01 billion.
Analysts Predict Continued Currency Stability
Analysts attributed this steady performance to tight administrative controls, a healthier reserve buffer, and controlled import demand. They said that currency stability is likely to continue as Pakistan prepares for upcoming talks with the International Monetary Fund.
Author Profile
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Moaaz Manzoor is a business correspondent who meticulously tracks Pakistan’s crucial but neglected natural resource industries.
He specializes in exposing inefficiencies and charting the course of modernization, highlighting how efforts to mechanize mining have dramatically cut marble and granite wastage, driving a recovery and attracting vital investment.
