ISLAMABAD: The Pakistani currency strengthened slightly on Monday, as the rupee gains 3 paisas against the US dollar in interbank trading. The local currency closed at Rs281.52, up from the previous day’s Rs281.55.
According to the Forex Association of Pakistan (FAP), the dollar’s buying and selling rates in the open market were Rs282.35 and Rs282.55, respectively. This modest increase signals a stable start to the week for the foreign exchange market.
Performance of other currencies
The Euro weakened slightly, dropping by 5 paisas to close at Rs330.35 against Rs330.40 the previous day, according to the State Bank of Pakistan (SBP). Meanwhile, the Japanese yen remained unchanged at Rs1.90.
The British Pound saw a significant rise of 82 paisas, trading at Rs382.39 compared to Rs381.56 previously. The Emirates Dirham dipped by 2 paisas to Rs76.64, while the Saudi Riyal stayed steady at Rs75.04.
Market overview
Experts say the rupee gains reflect cautious optimism in interbank trading, driven by foreign exchange inflows and stable macroeconomic indicators. However, the open market still shows slight variations in rates due to high demand for dollars from importers and businesses.
Analysts also noted that minor fluctuations in currency rates are normal as traders adjust positions ahead of the week. The rupee gains against the dollar may provide temporary relief to importers and businesses dealing in foreign currencies.
Outlook
Currency experts suggest monitoring the US dollar trend in international markets, global commodity prices, and domestic economic developments, as these factors directly affect the Pakistani rupee’s strength.
For now, Monday’s session indicates stability, with the rupee gains offering a modest positive sentiment for the local foreign exchange market.
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