The Pakistani rupee weakened by nine paisas against the US dollar in early trading on Monday, driven by increased demand for import and corporate payments. The greenback was being traded at Rs154.99 during morning hours in the interbank foreign exchange market, compared to the previous closing rate of Rs154.90.
Currency dealers reported that the rupee came under pressure due to higher dollar demand after the two-day weekend. It is common for trading activity to intensify on Mondays as pending import and corporate payment obligations are cleared. As a result, buyers rushed to cover their positions, adding strain on the rupee’s exchange rate.
According to market sources, the first trading session of the week saw cautious sentiment prevailing among currency traders. Concerns over the escalating tensions between the United States and Iran in the Middle East region contributed to market uncertainty. This geopolitical instability has led to fluctuations in global currency trading patterns, impacting emerging market currencies like the rupee.
Experts believe that the rupee’s outlook in the coming sessions will largely depend on the pace of foreign exchange inflows, oil prices, and regional political developments. Despite the rupee’s relative stability in recent weeks, sudden spikes in import demand and external uncertainty can trigger volatility in trading.
“The rupee may witness further pressure if corporate demand continues to rise, especially in the energy and industrial sectors,” said a senior trader at a leading commercial bank. He added that foreign currency trading remained sensitive to any geopolitical headlines, especially from oil-producing regions.
Meanwhile, the open market also witnessed increased trading activity, with dealers noting that customers were actively exchanging dollars for rupees ahead of expected price hikes in imported goods.
As trading resumes for the rest of the week, market participants will be keeping a close eye on external events and central bank interventions to gauge the rupee’s trajectory in the foreign exchange market.