The Pakistani Rupee (PKR) closed in red against the US Dollar (USD) for the third consecutive day, ending today’s interbank session at 278.55 after opening at 279. Despite the slight depreciation of 0.02% (seven paisas) on a day-on-day (DoD) basis, the rupee has appreciated compared to last year’s closing rate, marking a significant milestone. This is the first time in eight years that the rupee has ended a calendar year stronger than its previous year’s closing rate, according to Arif Habib Limited (AHL).

Throughout the day, the interbank rate fluctuated between 278-279, before settling at 278.55. In the open market, rates hovered between 278-281/ across various currency counters. While the rupee remained volatile against the greenback, it posted gains against several other major currencies during today’s session.

On a fiscal year-to-date basis, the rupee has depreciated by 0.1%. However, compared to 2023, the PKR has appreciated by 1.2% in 2024. This improvement is attributed to Pakistan’s stronger external position, including a current account surplus of $646 million in the first 11 months of 2024, compared to a deficit of $1.1 billion during the same period last year.

AHL noted that higher remittances and an increase in the State Bank of Pakistan’s (SBP) foreign exchange reserves, rising to $11.9 billion from $8.2 billion in December 2023—have played a key role in stabilizing the currency. Additionally, the narrowing gap between interbank and open market rates has further contributed to the rupee’s relative strength.

Performance Against Other Currencies
In today’s interbank session, the rupee showed mixed performance against other major currencies:

Saudi Riyal (SAR): Gained 2 paisas.
UAE Dirham (AED): Lost 2 paisas.
Canadian Dollar (CAD): Lost 44 paisas.
Euro (EUR): Gained 13 paisas.
British Pound (GBP): Gained 25 paisas.
Australian Dollar (AUD): Gained 26 paisas.