The USD to PKR exchange rate edged slightly lower on Friday as the Pakistani rupee showed mild strength in the interbank market. The State Bank of Pakistan (SBP) fixed the dollar rate at Rs 279.8016, down by three paisa from the previous session, marking the lowest level of 2026 so far.

The marginal decline reflects stable liquidity conditions and controlled demand, with currency traders reporting no fresh macroeconomic triggers behind the move.

Market participants said the rupee remains locked in a narrow trading band that has persisted since October 2025. Exporter dollar selling above Rs 280 and cautious buying by oil importers below Rs 279.80 continue to balance flows.

“Liquidity is ample; the currency rate is drifting on positional tidy-ups rather than fresh macro cues,” a senior treasury dealer said.

One-week forward contracts hovered near Rs 279.96, indicating minimal carry pressure and reinforcing near-term stability in the USD to PKR outlook.

The British pound posted a sharp gain against the rupee, supported by forward buying from exporters with UK exposure. Gulf currencies, including the Saudi riyal and UAE dirham, remained firm as Umrah-related demand and steady remittance inflows supported rates.

Analysts note that GCC currencies continue to trade in tight ranges due to their dollar pegs, while forward premiums reflect mild rupee depreciation expectations over the year.

The Australian and Canadian dollars strengthened slightly as iron ore prices stabilized and global oil hovered near $76 per barrel. However, early importer hedging limited further gains, keeping volatility in check.

Overall, the broader currency market showed no signs of stress ahead of the IMF’s first-quarter 2026 review.

Currency Rates in Pakistan – 29 January 2026

Currency	Rate (PKR)
US Dollar (USD to PKR)	279.80
British Pound (GBP)	385.71
Euro (EUR)	335.95
Saudi Riyal (SAR)	74.60
UAE Dirham (AED)	76.18
Qatari Riyal (QAR)	76.78
Kuwaiti Dinar (KWD)	918.92
Australian Dollar (AUD)	196.41
Canadian Dollar (CAD)	206.71
Japanese Yen (JPY)	1.83
Chinese Yuan (CNY)	40.33
Indian Rupee (INR)	3.05