Rupee Extends Winning Streak to 61 Days Against US Dollar

Introduction

The Pakistani Rupee (PKR) has continued its impressive performance against the US Dollar (USD) by extending its winning streak to 61 consecutive days in the interbank market. On December 17, 2025, the rupee closed in green once again, gaining seven paisas and settling at PKR 280.27 per dollar.

This consistent stability of the rupee has attracted attention from economists, traders, importers, and the general public, as currency movements directly impact inflation, import costs, fuel prices, and overall economic confidence in Pakistan.

PKR Closes Strong Against US Dollar

On Wednesday’s trading session, the rupee showed marginal but steady appreciation against the US Dollar. According to interbank market data:

• Previous close: PKR 280.34
• Current close: PKR 280.27
• Gain: 7 paisas

Although the movement was small, maintaining a positive trend for 61 straight sessions is considered a strong signal of currency stability.

Why the Rupee’s 61-Day Winning Streak Matters

The rupee’s extended winning streak is important for several reasons:

Economic Confidence

A stable rupee builds confidence among investors, both local and foreign, and signals controlled volatility in Pakistan’s foreign exchange market.

Inflation Control

A stronger PKR helps reduce imported inflation, especially for essential commodities such as fuel, food items, and machinery.

Import Cost Reduction

When the rupee holds steady, importers face lower exchange-rate risks, which can eventually benefit consumers.

Debt Management

Pakistan’s external debt repayments become slightly easier when the rupee does not depreciate sharply against the dollar.

Performance Against Other Major Currencies

While the rupee strengthened against the US Dollar, its performance against other major global currencies was mixed during the session.

Rupee Gains Against Euro, Pound, and Australian Dollar

The PKR performed positively against several major currencies:

• Euro (EUR): Closed higher
• British Pound (GBP): Recorded gains
• Australian Dollar (AUD): Ended the session in green

These gains indicate that the rupee is not only stable against the dollar but also showing selective strength against major global currencies.

Rupee Weakens Against UAE Dirham and Saudi Riyal

Despite its overall positive trend, the rupee ended on a negative note against Middle Eastern currencies, which are closely watched due to Pakistan’s trade and remittance links.

• UAE Dirham (AED): Slight loss
• Saudi Riyal (SAR): Minor depreciation

Since both AED and SAR are pegged to the US Dollar, their movements often mirror dollar trends with small variations.

Loss Against Canadian Dollar

The rupee recorded its largest daily loss against the Canadian Dollar (CAD), shedding 23 paisas.

This decline reflects:

• Global CAD strength
• Oil price movements (Canada being a major oil exporter)
• Cross-currency market adjustments

Interbank Currency Rates Snapshot

Below is a simplified view of interbank currency movements on December 17, 2025:

• USD: PKR 280.27 (gain)
• EUR: PKR 328.11 (gain)
• GBP: PKR 373.23 (gain)
• AUD: PKR 185.37 (gain)
• CAD: PKR 203.32 (loss)
• AED: PKR 76.31 (loss)
• SAR: PKR 74.71 (loss)

Overall, the rupee remained green against most currencies.

Factors Supporting Rupee Stability

Several domestic and international factors are helping the rupee maintain its stability:

1. Controlled Import Payments

Tighter controls on non-essential imports have reduced dollar outflows.

2. Stable Remittance Inflows

Worker remittances continue to provide foreign exchange support, especially from the Middle East.

3. Central Bank Monitoring

The State Bank of Pakistan (SBP) has maintained close oversight of the currency market, discouraging speculation.

4. Improved Market Sentiment

Reduced panic buying of dollars and better market discipline have helped the rupee remain steady.

Impact on Inflation and Consumer Prices

A stable rupee plays a crucial role in controlling inflation, especially in an import-dependent economy like Pakistan.

Positive Effects

• Lower pressure on fuel prices
• Stable prices for imported food and medicines
• Reduced cost of industrial raw materials

However, economists caution that currency stability alone is not enough; structural reforms are needed for long-term relief.

Business and Trade Implications

For Importers

A predictable exchange rate helps importers:

• Plan payments
• Reduce hedging costs
• Avoid sudden price shocks

For Exporters

While exporters prefer a slightly weaker rupee, stability helps them:

• Negotiate long-term contracts
• Maintain predictable profit margins

Is the Rupee’s Winning Streak Sustainable?

Analysts believe the rupee’s performance can remain stable in the short term, but long-term sustainability depends on:

• Export growth
• Foreign direct investment (FDI)
• External financing inflows
• Political and economic stability

Any sudden rise in oil prices or external debt pressure could affect the trend.

Comparison With Previous Years

In previous years, the rupee faced:

• Sharp devaluations
• High volatility
• Frequent market interventions

Compared to that period, a 61-day stable run is seen as a positive development, even if gains are marginal.

What Should the Public Expect Next?

For ordinary citizens, a stable rupee may not immediately reduce prices, but it helps:

• Prevent sudden inflation spikes
• Stabilize utility and fuel costs
• Improve overall economic confidence

Gradual improvements are more realistic than immediate relief.

Conclusion

The Pakistani Rupee’s 61-day winning streak against the US Dollar marks an important moment for Pakistan’s financial markets. Closing at PKR 280.27, the rupee continues to show resilience amid global economic uncertainty.

While gains remain modest, sustained stability is a positive signal for inflation control, trade planning, and investor confidence. However, experts stress that long-term currency strength will depend on economic reforms, export growth, and external financial discipline.

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