US currency weakens relative to Indian Rupee
Pakistani Rupee Depreciates Slightly Against Major Currencies
The Pakistani Rupee (PKR) continued its downward trend against major currencies this week, with the US dollar remaining stable.
Against the UAE Dirham, the PKR closed at 77.28 for buying and 77.60 for selling on Monday. This represents a slight depreciation compared to the previous week's closing rate of 77.27 for buying and 77.55 for selling.
The US dollar also remained steady against the PKR, with the currency closing at 282.45 in the inter-bank market on Monday. This is a slight appreciation from the previous week's closing rate of 282.72.
In the open market, the PKR remained unchanged against the US dollar for buying, settling at 282.47, but lost 5 paisa for selling, closing at 284.90.
Against the Euro, the PKR closed at 330.05 for buying and 332.15 for selling, marking a slight depreciation from the previous week's closing rate of 330.00 for buying and 332.00 for selling.
Oil prices edged higher on Monday, after falling more than 4% last week. Brent crude futures were up 36 cents on Monday, trading at $66.95 a barrel, while US West Texas Intermediate crude futures were up 34 cents, trading at $64.22.
The Pakistani rupee also saw small changes against the Saudi Riyal and the Euro this week. Against the Saudi Riyal, the PKR closed at 75.53 for buying and 75.88 for selling, representing a slight depreciation from the previous week's closing rate of 75.52 for buying and 75.83 for selling. In the open market, the PKR gained 5 paise against the Euro for both buying and selling.
Historically, the PKR has depreciated against the USD since March 2025. The exchange rate varied mostly between approximately PKR 269 to PKR 293 per USD during this period, with the rupee weakening slightly over the months. The average exchange rate for 2025 to date has been about PKR 281.33 per USD, representing a 1.25% depreciation in value against the USD so far this year.
Forecasts indicate a continuing downward trend of the rupee, possibly reaching around PKR 279 to 285 per USD by the end of 2025, with some models projecting higher depreciation beyond 2025. These forecasts are consistent with economic pressures facing the Pakistani economy.
In other news, the US President Donald Trump announced that he will meet Russian President Vladimir Putin on August 15 in Alaska to negotiate an end to the war in Ukraine. This event is not directly related to the PKR's value.
The dollar index was not mentioned to have changed on Monday, with Japanese markets closed for the Mountain Day holiday. Oil prices edged higher on Monday, after falling more than 4% last week.
- In light of the depreciation of the Pakistani Rupee, investors might consider alternative positions in industries that are less susceptible to inflation, such as finance or energy.
- The slight depreciation of the Pakistani Rupee against the UAE Dirham might impact the momentum of Pakistani imports from UAE-based industries.
- Amid the downward trend of the Pakistani Rupee, the index tracking major Pakistani industries could show a negative growth, reflecting the overall economic situation.
- As the Pakistani Rupee continues to depreciate against major currencies, economists are monitoring the energy sector closely since oil prices are global in nature and may influence the overall inflation.
