KARACHI: Rupee weakened further during the previous week as it depreciated Re0.74 or 0.26% against the US dollar. The local unit closed at 283.70, against 282.96 it had closed the week earlier against the greenback, according to the State Bank of Pakistan (SBP).
In line with market expectations, the Monetary Policy Committee (MPC) of the SBP decided to keep the policy rate unchanged at 11%. The MPC noted that the increase in inflation in May to 3.5% year-on-year (y/y) was in line with its expectation, whereas core inflation declined marginally.
After inching up to 3.5% YoY in May, inflation is expected to lower slightly, clocking in at 3.1% in June, as per a report by brokerage house JS Global.
Pakistan’s current account (C/A) posted a deficit of $103 million in May 2025, against surplus of $47 million (revised) last month.
On year-on-year (YoY) basis, the C/A decreased 56% against a deficit of $235 million recorded in the same month last year.
Pakistan’s Real Effective Exchange Rate (REER), a measure of the value of a currency against a weighted average of several foreign currencies, dropped to 97.81 in May 2025, down from 99.31 (revised) in April 2025.
Pakistan’s Ministry of Finance signed a syndicated term finance facility of $1 billion partially guaranteed by a Policy Based Guarantee of the Asian Development Bank’s (ADB) Programme ‘Improved Resource Mobilisation & Utilisation Reform’, according to a statement from Finance Division.
Meanwhile, foreign exchange reserves held by the SBP increased by $46 million on a weekly basis, clocking in at $11.72 billion as of June 13.
Open-market rates
In the open market, the PKR lost 91 paise for buying and 62 paise for selling against USD, closing at 284.23 and 285.74, respectively. Against Euro, the PKR lost 1.63 rupee for buying and 88 paise for selling, closing at 326.50 and 329.45, respectively.
Against UAE Dirham, the PKR lost 38 paise for buying and 31 paise for selling, closing at 77.33 and 78.03, respectively.
Against Saudi Riyal, the PKR lost 44 paise for buying and 37 paise for selling, closing at 75.65 and 76.30, respectively.
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THE RUPEE
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Weekly inter-bank market rates for dollar
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Bid Close Rs. 283.70
Offer Close Rs. 283.90
Bid Open Rs. 282.96
Offer Open Rs. 283.16
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Weekly open-market rates for dollar
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Bid Close Rs. 284.23
Offer Close Rs. 285.74
Bid Open Rs. 283.32
Offer Open Rs. 285.12
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Copyright Business Recorder, 2025
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