Pakistani Rupee Falls Against US Dollar on May 9,2025

Staff Report
KARACHI: The Pakistani rupee (PKR) declined against US dollar on the end of the week which remained under pressure in both the inter-bank and open markets.

The USD to PKR exchange rate stood at Rs 281.71 on Friday, recording a decline of Re0.19 or 0.07% against Rs 281.52 prevailing on Thursday.

This decline reflects broader global trends which showed that the US dollar gained against major currencies. This development came after the Federal Reserve had signaled that was not in a hurry to cut interest rates.

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The market is also looking at US-China trade negotiations which could result in shifting investor sentiment and pose impact on currency flows in emerging markets like Pakistan.

Interbank USD to PKR Exchange Rate – May 9, 2025
• Buying: Rs 281.71
• Selling: Rs 281.90
Pakistani Rupee in Open Market
• USD to PKR:
o Buying: Rs 281.78
o Selling: Rs 283.36
• Euro to PKR:
o Buying: Rs 316.38
o Selling: Rs 319.88
• UAE Dirham to PKR:
o Buying: Rs 76.73
o Selling: Rs 77.43
• Saudi Riyal to PKR:
o Buying: Rs 74.95
o Selling: Rs 75.66
Global Forex Market Trends
The US dollar index also gained this week against the major currencies which showed weakening trends.
• Euro dropped 0.6%, closing at $1.1217
• Japanese yen hit a one-month low at 146.18 per dollar
• British pound slipped to $1.3220 after details of a US-UK trade deal fell short of expectations
Oil and Gold Prices Influence Currency Markets
Crude oil prices, which are a major driver of Pakistan’s import bill and rupee stability, witnessed a continued rising trends:
• Brent crude: $63.27 (+0.68%)
• WTI crude: $60.33 (+0.7%)
• Both benchmarks had surged nearly 3% on Thursday
Gold prices, that are considered to be often a hedge against market volatility were near $2,315 per ounce, that were fueled by concerns over global growth and trade uncertainty.
Global Economic Indicators to Watch
• US job market has remained strong; nonfarm payrolls have backed Fed’s steady policy stance
• China’s exports have beat forecasts before May 10 trade talks with the US
• Eurozone manufacturing data has also shown weakness, and continued pressuring the euro
• Emerging market currencies like the Indian rupee and Turkish lira had also witnessed a decline against the dollar which reflected global risk-off sentiment
Currency Outlook: Key Drivers for Next Week
Traders and analysts will continue monitoring these key factors next week:
• Outcome of US-China economic dialogue in Switzerland
• US CPI inflation report and Fed comments
• Trends in oil and gold prices, critical for Pakistan’s external balance
• Performance of regional emerging market currencies
If current trends continue, the Pakistani rupee may trade in a tight range, facing downside risks driven by global market developments and rising import costs.
Market participants will also keep a close eye on remittance flows, external financing talks, and any State Bank of Pakistan (SBP) intervention to manage volatility.