Rupee breaks below 277 against dollar for first time in 3 years

The Pakistani rupee closed below 277 against the US dollar on Monday, finishing at PKR 276.97 in the interbank market. It is the first close under the 277 mark since October 16, 2023, when the currency finished at 276.8346.

According to Mettis Global News, the rupee gained 3.04 paisa during the session, rising from the previous close of 277.00. Intraday trading stayed tight: the bid touched a high of 277.05 while the ask touched a low of 277.10. In the open market, dealers quoted the dollar at 277.20 for buying and 280.00 for selling.

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Gains across the board

The rupee strengthened against other major currencies as well. The euro closed at 310.02, gaining 93.43 paisa or 0.30 per cent, the British pound finished at 366.64, up 20.64 paisa or 0.06 per cent, and the Swiss franc closed at 332.78, up 65.75 paisa or 0.20 per cent.

The Japanese yen stood at 1.7481, the Chinese yuan at 41.38, the Saudi riyal at 73.75 and the UAE dirham at 75.41.

Fresh data from the National Bank of Pakistan on Tuesday morning put the day open TT benchmark at 277.35 for selling and 276.85 for buying, signalling continued stability as the new trading session got under way.

A longer recovery

The milestone extends a steady run of strength. The rupee has appreciated by PKR 1.19, or 0.43 per cent, so far in the fiscal year 2026-27, and by PKR 3.15, or 1.14 per cent, since the start of the calendar year.

Money market rates edged up as well. The six month KIBOR bid and offer stood at 12.17 per cent and 12.42 per cent, up one basis point each.

What it means

A stronger rupee brings relief for importers, who pay less in rupee terms for fuel, machinery and raw materials, and it can ease pressure on fuel and food prices if the trend holds. For overseas Pakistanis, each dollar sent home now converts into fewer rupees, which trims the rupee value of remittances even as those inflows remain a key support for the currency.

Currency dealers link the recent steadiness to improved dollar liquidity, disciplined interbank trading and steady remittance inflows. The rupee has traded in a narrow band in recent weeks, with exporter selling and cautious importer demand keeping flows balanced.

A note on the numbers

Exchange rates move through the day and different outlets can report slightly different figures for the same session. Narr uses the interbank close reported by Mettis Global News as the reference for the headline rate, with the National Bank of Pakistan morning TT rates as the day open benchmark. Rates at individual money changers and banks can differ, so check the live rate before trading.

Sources: Mettis Global News https://mettisglobal.news/PKR-breaks-below-277-against-USD-for-first-time-since-October-2023-64136, Mettis Global News https://mettisglobal.news/NBP-issues-foreign-exchange-rates-64148