Pakistani rupee secures 22nd successive gain against US dollar

Rupee's Performance Against US Dollar Since 04 March 2025

The Pakistani rupee continued its winning run against the US dollar, appreciating 0.01% in the inter-bank market on Monday.

At close, the rupee settled at 281.62, a gain of Re0.03 against the greenback. This was the rupee’s 22nd successive gain against the greenback.

During the previous week, the Pakistani rupee settled on a positive note as it gained Re0.12 or 0.04% against the US dollar in the inter-bank market.

The local unit closed at 281.65, against 281.77 it had closed the week earlier against the greenback, according to the State Bank of Pakistan (SBP).

Internationally, the Japanese yen fell broadly on Monday following news that Japanese Prime Minister Shigeru Ishiba had resigned, while the US dollar was nursing losses after tumbling on a weak US jobs report that cemented expectations for a Federal Reserve rate cut this month.

Japan’s Ishiba on Sunday announced his resignation, ushering in a potentially lengthy period of policy uncertainty at a shaky moment for the world’s fourth-largest economy.

The yen slumped in response in Asia trade on Monday, falling 0.6% against the US dollar to 148.25.

The Japanese currency similarly slid to its lowest in more than a year against the euro and sterling at 173.91 and 200.33, respectively.

Meanwhile, the US dollar was recouping some of its heavy losses, helped in part by the yen’s weakness, after falling sharply on Friday on data that showed further cracks in the US labour market.

The nonfarm payrolls report showed US job growth weakened sharply in August, and the unemployment rate increased to nearly a four-year high of 4.3%.

Investors ramped up bets of an outsized 50-basis-point rate cut from the Fed later this month following the release and are now pricing in an 8% chance of such a move, as compared to none a week ago, according to the CME FedWatch tool.

Against the dollar, sterling fell 0.11% to $1.3492, having risen more than 0.5% on Friday. The euro was similarly down 0.11% at $1.1709, after hitting a more than one-month high on Friday.

The dollar index steadied at 97.87, after sliding more than 0.5% on Friday.

Oil prices, a key indicator of currency parity, rose on Monday, recovering some of last week’s losses, after producer group OPEC+ opted for a modest output hike and investors priced in the possibility of more sanctions on Russian crude.

OPEC+ flagged plans to further increase production from October but the amount was less than some analysts had anticipated. Reuters had reported earlier this month that members were considering another hike.

“The market had run ahead of itself in regard to this OPEC+ increase,” said Ole Hansen, head of commodity strategy at Saxo Bank. “Today we’re seeing a classic sell the rumour, buy the fact reaction.”

Brent crude LCOc1 climbed 57 cents, or 0.87%, to $66.07 a barrel by 10:58 a.m. EDT (1458 GMT), while U.S. West Texas Intermediate crude CLc1 rose 46 cents, or 0.74% to $62.33 a barrel.

Inter-bank market rates for dollar on Monday

BID Rs 281.62

OFFER Rs 281.82

Open-market movement

In the open market, the PKR gained 2 paise for buying and 10 paise for selling against USD, closing at 282.25 and 283.00, respectively.

Against Euro, the PKR lost 1.7 rupees for buying and 2.28 rupees for selling, closing at 330.60 and 333.15, respectively.

Against UAE Dirham, the PKR lost 19 paise for buying and 36 paise for selling, closing at 77.02 and 77.46, respectively.

Against Saudi Riyal, the PKR lost 13 paise for buying and 28 paise for selling, closing at 75.26 and 75.68, respectively.

Open-market rates for dollar on Monday

BID Rs 282.25

OFFER Rs 283.00