By Moaaz Manzoor
ISLAMABAD–The Pakistani rupee maintained its stability in the opening week of September, as improving inflows and stronger reserves bolstered market confidence.
Interbank rates moved only marginally across the five sessions, reflecting a steady trend against major currencies.
Against the US dollar, the rupee opened the week at 281.5561 (buying) and 281.9880 (selling) and closed at 281.4443 and 281.8762, showing minimal change throughout the period.
The Saudi riyal followed a narrow path, easing from 75.0388 and 75.1475 at the start to 75.0083 and 75.1197 by week’s end.
Chinese Yuan Shows Consistent Performance
The Chinese yuan displayed similar consistency, beginning at 39.4972 and 39.5482, slipping midweek to 39.3945 and 39.4458, and finishing modestly higher at 39.4370 and 39.4885.
The euro saw sharper movements, dropping from 329.9085 and 330.4069 in the opening session to 327.4059 and 327.9136 midweek before recovering to 328.4706 and 328.9715.
Pound Sterling Swings Widely Against PKR
The pound sterling showed the widest swings, sliding from 380.8189 and 381.4085 on Monday to 376.4201 and 377.0025 on Wednesday before regaining ground at 378.7129 and 379.2858 on Friday.
Muhammad Bilal Ejaz, Research Analyst at Ismail Iqbal Securities, told WealthPakistan: “The PKR’s sustained strength indicates that external inflows and improved reserves are anchoring stability and reducing near-term volatility risks.
However, maintaining stability will depend on continued inflows, monetary discipline, and favourable external conditions. It is also important to factor in the USD’s own dynamics; the dollar index is down ~3% YoY, reflecting broad dollar weakness.
To put this in perspective, as of Sept 5, the PKR has depreciated 1.9% against the USD but a sharper 7.03% against the euro and 4.29% against the GBP.”
Stronger Inflows and Reserves Support PKR
Muhammad Waqas Ghani, Head of Equity Research at JS Global Capital, said: “Stronger inflows, rising reserves, and remittance growth are anchoring rupee stability and reducing volatility risks.”
Analysts note that the rupee’s performance this week highlights the support provided by external inflows and disciplined monetary management.
With reserves on an upward path and speculative activity contained, the local currency enters the coming weeks on firmer ground, though much will depend on external conditions.