RECORDER REPORT
KARACHI: The Pakistani rupee strengthened against the US dollar, appreciating 0.01 percent 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 USD21.022 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 percent 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 US dollar but on course for a 1 percent 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 USD62.22 per barrel by 1307 GMT. US West Texas Intermediate (WTI) crude was up 6 cents at USD58.41.
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.
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Open Bid Rs 280.63
Open Offer Rs 281.20
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Interbank Closing Rates: Interbank Closing Rates For Dollar on Friday
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Open Bid Rs 280.17
Open Offer Rs 280.37
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RUPEE IN LAHORE: The Pakistani rupee was marginally up against the US dollar and the British pound, amid sluggish trading activity, in the local currency market on Friday.
Currency dealers said that after the open, the rupee showed firmness against the greenback while later moved both ways till the close amid a slow trading activity. According to dealers, in last session the rupee came under pressure, but finally managed a positive closing, adding marginally to its worth against the US dollar. They quoted its final buying and selling rates as Rs 280.90 and Rs 281.20, respectively against previous day’s Rs 281.00 and Rs 281.25, respectively.
The value of the local currency also slightly appreciated against the British unit, with its buying rate closing at Rs 378.10 and selling Rs 382.00 against preceding session’s Rs 378.50 and Rs 382.50, respectively.
Copyright Business Recorder, 2025
