Rupee Dollar Shift: PKR Gains as Global Dollar Weakens
The Pakistani rupee opened stronger against the US dollar on Wednesday. It gained 0.08 percent during early interbank trading. As a result, market sentiment showed mild improvement.
By 10:30am, the rupee traded at 279.93 per dollar. This level marked a gain of Re0.23 from the previous close. On Tuesday, the currency had settled at 280.16.
Traders pointed to steady demand conditions in the interbank market. However, volumes remained moderate during early hours. Therefore, analysts expect cautious trading throughout the day.
Central Bank Moves Support Currency Stability
In addition, the State Bank of Pakistan increased its market activity. The SBP bought around one billion dollars from the interbank market in September 2025. This move signaled stronger intervention amid improving external inflows.
With this purchase, total SBP intervention reached $6.9 billion over one year. The period covered October 2024 to September 2025. As a result, foreign exchange reserves received continued support.
Experts believe such actions help smooth volatility. However, they also stress the need for sustainable inflows. Therefore, export growth and remittances remain critical.
Global Dollar Pressure Shapes Market Direction
Internationally, the US dollar remained mostly steady on Wednesday. However, it headed toward its biggest annual fall since 2017. Rate cuts, fiscal concerns, and trade uncertainty weighed on sentiment.
These challenges may persist into 2026. As a result, rival currencies could stay firm. For example, the euro and the pound both posted strong yearly gains.
The euro traded near $1.1747, while the pound hovered around $1.3463. Both stood near their best annual performance in eight years. Meanwhile, the dollar index stayed close to 98.228.
Oil prices also influenced currency trends. Prices stayed flat on Wednesday but fell over 15 percent this year. Oversupply, geopolitical tensions, and OPEC+ output decisions played a role.
Brent crude futures dropped nearly 18 percent in 2025. This marked their longest losing streak on record. On Wednesday, the March contract edged up to $61.44 per barrel.
