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Rupee registers marginal gain against US dollar

February 2, 2026
in Business
Rupee registers marginal gain against US dollar

Rupee’s Performance Against US Dollar Since 04 March 2025

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The Pakistani rupee posted marginal gain against the US dollar in the inter-bank market on Monday.

At close, the local currency settled at 279.76, a gain of Re0.01 against the greenback.

On Friday, the local unit closed at 279.77.

Pakistan’s headline inflation clocked in at 5.8% on a year-on-year (YoY) basis in January 2026, showed Pakistan Bureau of Statistics (PBS) data on Monday, a reading in line with the Ministry of Finance’s estimate of 5-6%.

The consumer price index (CPI) was recorded at 5.6% in December 2025. The CPI stood at 2.4% in January 2025.

The country’s trade deficit significantly increased by 28.22% to $22.04 billion in the first seven months of the current fiscal year (7MFY26), as compared to the same period of the previous year, data released by the Pakistan Bureau of Statistics (PBS) showed.

Trade balance, the gap between exports and imports, was recorded at a deficit of $17.19 billion in July-January of the previous fiscal year (7MFY25).

The dollar clung to its gains on Monday as investors weighed what a Federal Reserve under Kevin Warsh ​might look like, with his preference for a smaller balance sheet.

The yen was also back on traders’ radars, ‌after Japanese Prime Minister Sanae Takaichi over the weekend talked up the benefits of a weaker yen in a campaign speech, in a tone at odds with her finance ministry that has worked to stem the currency’s declines.

US President Donald Trump’s pick of Warsh as the next Fed Chair sparked a wave of selling across risky assets and sent precious metals tumbling on Friday, while the dollar clawed back its losses ‌from earlier last week.

While investors think Warsh will be inclined to cut rates, they expect him ​to rein in the Fed’s balance sheet, which is typically supportive for the dollar as it reduces the money supply in the market.

The greenback remained on the front foot in early Asia trade on Monday, leaving the euro firmly away from the $1.20 ‍level as it last stood at $1.1848.

Sterling was down 0.05% to $1.3680, while the dollar index steadied at 97.22 after jumping 1% on Friday.

Oil prices, a key indicator of currency parity, fell more than 4% on Monday after U.S. President Donald Trump said Iran was “seriously talking” with Washington, signalling a de-escalation of tensions with an OPEC member, while a stronger dollar also weighed on prices.

Brent crude futures were down $3.34, or 4.8%, at $65.98 per barrel at 1113 GMT. US West Texas Intermediate crude fell $3.37, or 5.2%, to $61.84 per barrel.

Brent and WTI fell after posting their biggest monthly increase since 2022 in January, as risks of a military strike on Iran receded after Trump’s weekend comments. Brent gained 16% in January, while WTI rose by 13%.

Inter-bank market rates for dollar on Monday

BID Rs 279.76

OFFER Rs 279.96

Open-market movement

In the open market, the PKR lost 2 paise for buying and gained 2 paise for selling against USD, closing at 280.24 and 280.80, respectively.

Against Euro, the PKR gained 1.56 rupee for buying and 1.64 rupee for selling, closing at 332.16 and 335.20, respectively.

Against UAE Dirham, the PKR lost 4 paise for buying and gained 6 paise for selling, closing at 76.53 and 77.23, respectively.

Against Saudi Riyal, the PKR remained unchanged for buying and gained 5 paise for selling, closing at 74.80 and 75.37, respectively.

Open-market rates for dollar on Monday

BID Rs 280.24

OFFER Rs 280.80

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