Rupee posts gain against US dollar in final session of year

The Pakistani rupee strengthened against the US dollar, appreciating 0.01% in the inter-bank market during the final trading session of the year on Wednesday.

At close, the local currency settled at 280.12, a gain of Re0.03 against the greenback.

On Tuesday, the local unit closed at 280.15.

The SBP purchased a hefty $1 billion worth of forex from the inter-bank market in September 2025, signalling a marked increase in its market intervention amid improving external inflows.

With the latest purchase, the SBP’s total foreign exchange intervention over the last year, from October 2024 to September 2025, reached $6.9 billion, reflecting sustained efforts to shore up foreign exchange reserves.

The Ministry of Finance, in its Monthly Economic Update & Outlook December 2025, said Pakistan’s economy was projected to maintain its “positive momentum” in the coming months, driven by industrial growth, improved governance, digitalisation, and prudent macroeconomic management.

Internationally, the US dollar held steady on Wednesday but was headed for its biggest annual drop since 2017 as interest rate cuts, fiscal worries and erratic trade policies under US President Donald Trump cast a shadow on currency markets in 2025.

Many of those worries are likely to remain in 2026, suggesting the dollar’s dire performance could extend and underpin the behaviour of some of its rivals, including the euro and sterling, that have made significant gains this year.

Adding to the dollar’s woes, concerns about the Federal Reserve’s independence under the Trump administration remain in focus.

The euro was steady at $1.1747, and the pound last bought $1.3463 on the last trading day of the year.

Both are poised for their biggest yearly gains in eight years.

The dollar index, which measures the US currency versus six other major currencies, was at 98.228, holding onto its overnight gains. The index has declined 9.5% in 2025 while the euro gained 13.5% and the pound surged 7.6%.

Oil prices, a key indicator of currency parity, crept higher on Wednesday, while heading for a fall of more than 15% over the course of 2025, as expectations of oversupply increased in a year marked by wars, higher tariffs, increased OPEC+ output and sanctions on Russia, Iran and Venezuela.

Brent crude futures, down nearly 18% - the most substantial annual percentage decline since 2020 - are on track for a third straight year of losses, their longest losing streak to date. U.S. West Texas Intermediate crude headed for a 19% annual decline.

The 2025 average prices for both benchmarks are the lowest since 2020, LSEG data showed. Brent futures rose 21 cents to $61.54 a barrel at 1150 GMT, while U.S. West Texas Intermediate crude was at $58.16, up 21 cents.

Inter-bank market rates for dollar on Wednesday

BID                            Rs 280.12

OFFER                      Rs 280.32

Open-market movement

In the open market, the PKR gained 16.00 paisa for buying and 5.00 paisa for selling against USD, closing at 280.39 and 281.15, respectively.

Against Euro, the PKR gained 1.24 rupee for buying and 1.21 rupee for selling, closing at 328.35 and 331.49, respectively.

Against UAE Dirham, the PKR gained 3.00 paisa for buying and 2.00 paisa for selling, closing at 76.47 and 77.25, respectively.

Against Saudi Riyal, the PKR gained 2.00 paisa for buying and 1.00 paisa for selling, closing at 74.74 and 75.36, respectively.

Open-market rates for dollar on Wednesday

BID                            Rs 280.39

OFFER                      Rs 281.15