By Moaaz Manzoor
The Pakistani rupee remained broadly stable against major international currencies during April, posting a slight overall appreciation against the US dollar amid mixed macroeconomic indicators.
According to the State Bank of Pakistan weighted average customer exchange rate, the US dollar stood at 278.8452 for buying and 279.2703 for selling at the start of April. By the end of the first week on April 10, it eased to 278.7407 and 279.1658. The rupee strengthened further to 278.6596 and 279.0847 by April 17, and to 278.5886 and 279.0137 by April 24. By April 30, the greenback closed at 278.5150 for buying and 278.9401 for selling, reflecting a marginal appreciation over the month.
The euro showed a two-phase trend, strengthening during the first half before easing toward the end. It opened at 322.7697 for buying and 323.2559 for selling, rose to 325.7887 and 326.2839 by April 10, and peaked at 328.0890 and 328.5872 by April 17. It then declined to 325.1718 and 325.6658 by April 24, closing at 324.8434 and 325.3368 at month-end.
The British pound followed a similar pattern, rising from 369.8313 for buying and 370.4072 for selling at the start of the month to 374.0529 and 374.6250 by April 10, and peaking at 376.4986 and 377.0837 by April 17. It eased to 374.8490 and 375.4226 by April 24 before settling at 375.0420 and 375.6155 at the end of April.
Among regional currencies, the Saudi riyal remained largely stable, moving from 74.2964 for buying and 74.4068 for selling at the beginning of the month to 74.2535 and 74.3617 by April 30. The Chinese yuan recorded limited movement, ending the month at 40.7495 for buying and 40.8020 for selling, compared to 40.5563 and 40.6086 at the start. The Japanese yen showed modest volatility, declining from 1.7579 for buying and 1.7605 for selling to 1.7344 and 1.7370 at month-end.
Broader macroeconomic indicators presented a mixed outlook. Inflation rose to 7.3% year-on-year in March 2026, up from 7.0% in February and the highest level since August 2024. In response, the State Bank of Pakistan raised the policy rate by 100 basis points to 11.5% on April 27.
On the external front, Pakistan recorded a current account surplus of $1.07 billion in March, compared to $231 million in February, bringing the cumulative surplus for 9MFY26 to $8 million. Remittances increased by 8% year-on-year to $30.3 billion during 9MFY26, although inflows for March stood at $3.8 billion.
Financial market activity indicated tightening conditions. Treasury bill yields rose by 40 to 80 basis points across tenors, while bids were rejected in the PIB auction amid higher yield expectations.
During the month, Pakistan received the final $1 billion tranche under Saudi Arabia’s $3 billion support package, repaid $3.45 billion to the United Arab Emirates against maturing deposits, and raised $750 million through a Eurobond issuance.
Fitch Ratings affirmed Pakistan’s sovereign rating at ‘B-’ with a stable outlook, while the World Bank reclassified Pakistan into the MENAAP region effective fiscal year 2026.
Industrial activity remained supportive, with Large-Scale Manufacturing growing by 6.5% year-on-year in February, although it declined 9.0% month-on-month. Cumulative growth reached 5.9% during 8MFY26.
Overall, the rupee’s performance in April reflected relative stability supported by improved external balances and tighter monetary policy. However, persistent inflationary pressures and ongoing external financing needs continue to pose risks to currency stability.
Credit: INP-WealthPk