Pakistani rupee up fifth day, closes at 282.22

The Pakistani rupee closed at 282.22, its fifth straight gain, as a weaker US dollar and stable oil prices supported sentiment. Upcoming Fed and SBP policy meetings will be pivotal for currency direction.

Staff Report

The Pakistani rupee strengthened for a fifth straight session on Wednesday, closing at 282.22 in the inter‑bank market, up Re0.20 (0.07%) as a softer US dollar aided sentiment, Business Recorder reported.

The local currency finished stronger than Tuesday’s 282.42 close, extending a weeklong upswing that traders linked to improved mood in the FX market and supportive global cues, according to Business Recorder.

Dollar eases as markets price a September Fed cut

The US dollar slipped to a two‑week low after July inflation printed in line with forecasts, prompting futures to price the probability of a Federal Reserve rate cut next month at about 98%. The move undercut the greenback and supported emerging‑market currencies, Reuters reported.

Oil steady; external cues still matter

Oil—often a driver for Pakistan’s external account—was little changed after an industry report showed a build in US crude inventories, while officials signalled potential for tougher Russia sanctions. Brent hovered near $66 and WTI around $63, according to Reuters.

Policy anchors and flows

Pakistan’s IMF program has provided an anchor for sentiment in recent months, with the country receiving a second tranche in May and staff‑level agreements paving the way for additional climate‑resilience funding.

Foreign‑exchange buffers remain a key variable. State Bank of Pakistan (SBP) data last week showed total liquid reserves at $19.50 billion, with SBP‑held reserves at $14.23 billion as of August 1, 2025, according to Business Recorder.

Remittances have also been supportive: inflows reached $3.2 billion in July 2025, up 7.4% year‑on‑year, with FY25 remittances at a record $38.3 billion.

What to watch

Markets will track the Fed’s September 16–17 meeting and Pakistan’s next Monetary Policy Committee meeting on September 15 for rate signals that could influence the Pakistani rupee according to Federal Reserve and State Bank of Pakistan.