Home
PKR starts week with slight gain as dollar remains under pressure

PKR starts week with slight gain as dollar remains under pressure

Web Desk
Aug 25, 2025

KARACHI: The Pakistani rupee opened the week on a positive note, registering a marginal improvement against the US dollar in the inter-bank market on Monday.

At 10:25am, the local currency was trading at 281.66, gaining 24 paisa or 0.09 percent against the greenback. The rupee eventually closed at 281.90, compared to 282.06 at the end of the previous week, according to the State Bank of Pakistan (SBP).

A steady climb in recent weeks

The rupee has been showing signs of gradual strength. Last week it gained Re0.16 or 0.05 percent against the dollar. On a broader scale, the local unit has appreciated 1.86 rupees or 0.66 percent in the current fiscal year, though it remains weaker by 3.35 rupees or 1.19 percent in 2025 so far.

On Friday, August 22, the rupee had inched up by 1.75 paisa to close the week at 281.90 per dollar, slightly stronger than the day before. It also posted gains against several other major currencies.

It rose 1.29 paisa against the Japanese yen, 2.22 paisa against the Chinese yuan, and 1.81 rupees against the British pound. The rupee gained a sharp 1.97 rupees against the Swiss franc and strengthened by 1.74 rupees against the euro.

However, PKR slipped slightly against the Saudi riyal and remained almost unchanged against the UAE dirham.

Global dollar under strain

The movement in the rupee comes as the US dollar struggles on the international front. The greenback attempted to recover on Monday after a steep fall last week, when comments from Federal Reserve Chair Jerome Powell at the Jackson Hole symposium fuelled expectations of an interest rate cut in September.

Pakistan Stock Exchange closes lower amid profit-taking

Powell’s dovish stance sent the dollar tumbling more than 1 percent on Friday, with traders now betting on an 80 percent chance of a quarter-point rate cut at the Fed’s September 17 meeting. Markets are also pricing in nearly 48 basis points of reductions by the end of the year.

By early Monday in Asia, the dollar was up 0.2 percent against the euro at $1.1699, though still close to a four-week low. It managed slight gains against the sterling and yen but remained under pressure overall. Meanwhile, the Australian dollar briefly touched a one-week high before easing back.

The greenback’s weakness has been compounded by political noise at home, as US President Donald Trump’s repeated criticism of Powell and other Fed policymakers raised concerns over the central bank’s independence.