The Pakistani rupee strengthened slightly in Thursday’s trading session, with the State Bank of Pakistan (SBP) fixing the USD/PKR mark-to-market (M2M) rate at Rs279.8122, according to the latest currency rates report.
The U.S. dollar retreated by 10 paisa, remaining firmly within the 279–282 range that has dominated trading since October. One-week forward contracts hovered near 280.00, reflecting a very thin carry of around 0.07%. Market participants noted exporters were active sellers above 280.20, while oil importers selectively bought below 279.80, keeping the market well balanced. Dealers said ample liquidity meant movements were driven more by position adjustments than fresh macroeconomic signals.
The British pound emerged as the standout performer, jumping to Rs386.10 from 382.08 a day earlier. One-year forward pricing at 399.77 suggests about 3.6% annualised rupee weakness, prompting textile exporters with UK exposure to lock in medium-term receivables.
Among Gulf currencies, movements remained muted. The Saudi riyal edged to 74.61, the UAE dirham firmed to 76.18, and the Qatari riyal held near 76.78, all reflecting the stability of dollar-pegged currencies. Forward curves for these pairs continue to imply annualised rupee depreciation in the 3–4% range, underscoring calm conditions in key remittance corridors.
The Kuwaiti dinar strengthened to 918.17, with slightly wider forward points than other GCC currencies due to thinner liquidity. Commodity-linked currencies also firmed, with the Australian dollar rebounding to 195.92 on steady iron-ore prices and the Canadian dollar rising to 206.12 as crude oil hovered near $76 per barrel.
In other major currencies, the euro opened at 335.61, gaining on the week after softer German inflation data, while the Japanese yen remained the weakest major on a forward basis, pricing in the steepest annualised rupee depreciation among G-10 currencies. The Swiss franc, Singapore dollar, Chinese yuan, Indian rupee, and other regional currencies stayed within familiar ranges.
Overall, currency markets reflected stability and low event risk, with traders seeing no immediate pressure ahead of the IMF’s first-quarter 2026 review, keeping the rupee broadly anchored despite minor day-to-day fluctuations.
