The Pakistani rupee (PKR) opened Friday on a firmer note, gaining modest ground against the US dollar (USD) as trading began in the interbank market, even as global currency markets remained cautious.
In early dealings, the PKR was quoted at Rs280.05 per dollar, up by 21 paisa, or 0.07 percent, from the previous close. The local unit had ended Thursday’s session at Rs280.26, after moving within a narrow range throughout the day.
Modest support amid global uncertainty
Currency dealers said the slight improvement reflected stable demand and supply conditions in the local market, though sentiment remains sensitive to developments abroad.
Despite Friday’s early gains, traders were not expecting sharp moves, given mixed signals from major global economies.
Internationally, the Japanese yen stayed near recent lows as investors waited for a policy decision from the Bank of Japan. Markets are widely expecting a 25 basis point increase in Japan’s short-term interest rate, which would take it to 0.75 percent. However, attention is focused on the central bank’s outlook and whether it signals further rate increases next year.
The US dollar briefly weakened overnight after an unexpected drop in US inflation, but the move did not last. Investors remained unsure about the reliability of the data, as collection was affected by the US government shutdown, leading the dollar to recover most of its losses.
In Europe, the euro edged lower after European Central Bank President Christine Lagarde avoided giving clear guidance on future rate moves, saying all options remained open.
Sterling also saw choppy trade, settling near $1.3392 after the Bank of England cut interest rates to 3.75 percent, a decision that was closer than markets had anticipated.
Back home, the rupee’s broader performance shows a mixed picture. During the current fiscal year, it has strengthened by Rs3.50, or 1.25 percent, against the dollar. However, it has weakened by Rs1.71, or 0.61 percent, so far this calendar year.
On Thursday, the rupee had mostly traded flat, with minor gains against the yen and dirham, but it lost ground against the pound, euro, Swiss franc and Chinese yuan, underlining the uneven pressures facing the local currency.
