The Pakistani rupee strengthened against the US dollar, appreciating 0.01% in the inter-bank market on Friday.
At close, the local currency settled at 280.17, a gain of Re0.03 against the greenback, according to State Bank of Pakistan (SBP) data.
On Wednesday, the local unit closed at 280.20.
Pakistan’s liquid foreign exchange reserves stood at $21.022 billion as of December 19, 2025, with reserves held by the SBP accounting for $15.903 billion, according to data released by the central bank on Friday.
Globally, as the new year approaches, investors are focused on when the US Federal Reserve might further cut interest rates and by how much. Traders are pricing in at least two cuts in 2026, although they do not expect the Fed to move before June.
The central bank itself has projected one more cut next year, but a divided Fed has left investors on edge about the US policy outlook.
Investors are also awaiting President Donald Trump’s nomination of a new Fed chair to replace Jerome Powell, whose term ends in May, and any hint of Trump’s decision could sway markets in the coming week.
The US dollar has been pressured as a result, pushing the euro, sterling and the Swiss franc to recent highs.
The dollar index, which measures the dollar against six rivals, was poised for a 0.8% drop for the week, its weakest weekly performance since July. It was steady at 97.935 in Asian hours on Friday.
The Japanese yen was a shade weaker at 156.23 per U.S. dollar but on course for a 1% weekly rise, its biggest weekly gain since the end of September, after strong bouts of verbal warnings from Tokyo that have left intervention risks on the table.
The yen has weakened despite the Bank of Japan delivering a well-telegraphed rate hike last week as markets interpreted comments from Governor Kazuo Ueda to suggest the central bank will not rush further rate hikes.
Oil prices, a key indicator of currency parity, were stable on Friday as investors weighed potential supply risks from developing geopolitical tensions in a thin post-Christmas session, after the US carried out airstrikes against Islamic State militants in Nigeria and put more economic pressure on Venezuelan oil.
Brent crude futures fell 2 cents to $62.22 per barrel by 1307 GMT. US West Texas Intermediate (WTI) crude was up 6 cents at $58.41.
Inter-bank market rates for dollar on Friday
BID Rs 280.17
OFFER Rs 280.37
Open-market movement
In the open market, the PKR gained 2 paise for buying and 5 paise for selling against USD, closing at 280.63 and 281.20, respectively.
Against Euro, the PKR gained 56 paise for buying and 34 paise for selling, closing at 329.87 and 333.07, respectively.
Against UAE Dirham, the PKR gained 1 paisa for buying and 5 paise for selling, closing at 76.54 and 77.34, respectively.
Against Saudi Riyal, the PKR lost 1 paisa for buying and gained 2 paise for selling, closing at 74.81 and 75.39, respectively.
Open-market rates for dollar on Friday
BID Rs 280.63
OFFER Rs 281.20
Comments
Comments are closed for this article.