USD to PKR Drops for 88th Day After SBP Decision

The USD to PKR exchange rate declined for the 88th consecutive trading session on January 27, 2026, as the Pakistani rupee continued its steady recovery following key developments from the State Bank of Pakistan (SBP). The rupee closed at PKR 279.82 per dollar, gaining two paisas in the interbank market, extending one of the longest winning streaks in recent history.

The Pakistani rupee (PKR) remained firm against the US dollar (USD) after markets reacted positively to SBP’s decision to keep the policy interest rate unchanged, signaling caution amid global and domestic economic risks. The central bank’s guidance helped stabilize currency sentiment despite expectations of a rate cut.

According to market dealers, controlled dollar demand and SBP’s active presence in the interbank market supported the rupee’s performance.

“The SBP’s cautious stance and continued dollar purchases have helped contain volatility and support the rupee,” a currency trader said.

The rupee’s sustained gains come amid reports that the SBP purchased nearly $7 billion from the interbank market over the past year, helping rebuild foreign exchange reserves. Improved import controls, steady remittances, and reduced speculative activity have also eased pressure on the local currency.

However, the central bank has advised markets to remain cautious about the country’s future economic outlook, indicating that currency stability will depend on disciplined fiscal and monetary policies.

While the rupee gained against the US dollar, UAE dirham, and Saudi riyal, it lost ground against the euro and British pound during Tuesday’s session. The PKR fell 47 paisas against GBP and 45 paisas against EUR, reflecting global currency movements.

Interbank Exchange Rates (PKR)

Analysts believe the USD to PKR trend may remain stable in the short term if SBP continues prudent monetary management and external inflows remain consistent. Any sharp movement in global oil prices or delays in external financing could, however, impact currency momentum.