USD exchange rate: Dollar edges up slightly against rupee

The Pakistani rupee saw a slight uptick against the US dollar during early trading on Tuesday, gaining 0.04% in the inter-bank market.

At 11:00 AM, the currency was valued at 277.75, marking an increase of Re0.11 from the previous day session.

Meanwhile, the British pound (GBP) reached Rs357.39 on the selling side, with the buying rate at Rs356.75.

The Swiss franc (CHF) held steady at Rs315.77 for selling and Rs315.20 for buying.

Similarly, the Canadian dollar (CAD) had a selling price of Rs199.60 and buying price of Rs199.24.

As the week went on, the Australian dollar (AUD) traded at Rs182.35 for selling and Rs 182.02 for buying.

The exchange rates for the Gulf currencies were also closely monitored. The United Arab Emirates dirham (AED) was priced at Rs76.29 for selling and Rs76.15 for buying.

The Saudi riyal (SAR) stood at Rs74.09 for selling and Rs73.96 for buying.

Meanwhile the Qatari riyal (QAR) was being sold at Rs76.41 and bought at Rs76.27.

However, the Kuwaiti dinar (KWD) outshone the others with a selling price of Rs 905.87 and a buying price of Rs 904, making it one of the most expensive currencies in the market.

Earlier, Pakistani currency depreciated on Monday Rs0.12 to Rs277.86 against the US dollar in the inter-bank market, as concerns grew over a potential $2.5 billion shortfall in foreign financing in the ongoing fiscal year.

This marks the resumption of a downward trend at the beginning of the new week. According to the State Bank of Pakistan's (SBP) data, the rupee had closed on Friday at Rs277.74/$ with a day-on-day recovery of Rs0.16 from the seven-week low of Rs277.95/$ hit on Thursday.

Exchange Companies Association of Pakistan reported that the local currency eased Rs0.03 on a day-on-day basis in the open market, closing at Rs278.77/$. The rupee came under some pressure as a review mission of the International Monetary Fund (IMF) arrived to conduct an early assessment of Pakistan's economy under a $7 billion loan programme. The first economic review was originally scheduled for March 2025.

The IMF team reached Pakistan due to the $2.5 billion shortfall in foreign financing for fiscal year 2024-25, mounting pressure on the rupee. The shortfall is expected to be overcome with the help of creditors such as Saudi Arabia, the UAE, Qatar and China. However, the rupee may continue to face pressure until the financing gap is bridged.

Meanwhile, the All Pakistan Saraf Gems and Jewellers Association reported that gold price decreased Rs1,300 to Rs277,500 per tola (11.66 grams) in line with the global trend. The precious metal dropped $13 to $2,670 per ounce (31.10 grams) in the international market.

Yesterday, Pakistan Stock Exchange (PSX) rallied to a new all-time high at 93,648 points, driven by blue-chip stocks, as investor optimism grew over news of impending privatisation of state-owned enterprises (SOEs) and foreign interest triggered by the revised MSCI index weight for Pakistan.

A stable rupee and declining bank lending rates, following a drop in government bond yields, further spurred buying activity.

"Stocks reached a new all-time high, led by blue chips, on the IMF's calls for privatisation of SOEs and expected foreign interest after revision in the MSCI standard index weight to 4.4%," said Ahsan Mehanti, Managing Director of Arif Habib Corp.

Rupee stability and the falling bank lending rates following a slump in government's bond yields played the role of catalysts in bullish activity at the PSX, he added.

At the close of trading, the benchmark KSE-100 index recorded an increase of 356.64 points, or 0.38%, to 93,648.33.

Topline Securities wrote in its review that the market showed a positive momentum, with the KSE-100 index reaching the peak of 94,020 and dipping to the low of 93,319, as investors took a directional stance, driven by lower valuations in the pharmaceutical sector.

The index was lifted by positive contributions from Oil and Gas Development Company (OGDC), Pakistan Petroleum Limited (PPL), Abbott Laboratories, The Searle Company and GlaxoSmithKline, which collectively added 399 points.

Trading activity remained robust, with 815 million shares traded, amounting to Rs37 billion, Topline added.

AHL, in its report, said it was a strong session for the exploration and production (E&P) sector and Sui companies, with the KSE-100 index gaining 0.4% day-on-day.

Fifty-one shares rose, while 46 declined, where OGDC (+3.25%), PPL (+2.73%) and Abbott Laboratories (+9.74%) emerged as the top contributors to the index gains. Pharmaceutical stocks were also in demand, with most names reaching their daily price limit, it said.

Notable movements were seen in Sui Southern Gas Company (+10%) and Pak Elektron (+8%), which recorded an all-time high trading volume of 78 million shares.

Attock Refinery (-4.04%) issued a notice to the PSX, denying recent market rumours of a potential sale of the company. The refinery had been trading up 9.5% day-on-day before the clarification.

The momentum remained robust, with clear sector rotation in the market and near-term support around the 92,000 level, AHL added.

JS Global analyst Mubashir Anis Naviwala wrote that the PSX saw a volatile session, hitting a record intra-day high of 94,020 points before profit-taking set in, pulling the market back to 93,319.

Despite this, strong interest in E&P and pharma stocks kept investor sentiment high. The KSE-100 index ultimately settled at 93,648, marking a gain of 357 points.

"Moving forward, we recommend a buy-on-dips strategy, with a focus on E&P, pharmaceutical and fertiliser sectors, which are poised for a potential upside," the analyst said.

Overall trading volumes increased to 815.2 million shares compared with Friday's tally of 763.3 million. The value of shares traded during the day was Rs37.3 billion.

Shares of 454 companies were traded. Of these, 227 stocks closed higher, 184 fell and 43 remained unchanged.

Cnergyico PK was the volume leader with trading in 98.6 million shares, gaining Rs0.4 to close at Rs4.52. It was followed by Pak Elektron with 78.1 million shares, gaining Rs2.15 to close at Rs29.01 and K-Electric with 70.2 million shares, gaining Rs0.14 to close at Rs4.98.

During the day, foreign investors sold shares worth Rs18.2 million, according to the NCCPL.