Karachi, 26 December 2025: The Pakistani rupee edged higher in the post-holiday trading session, with the State Bank of Pakistan (SBP) fixing the USD/PKR mark-to-market rate at Rs 280.1731, 5 paisa lower than Thursday’s close as it releases the currency rates report.Priority Currencies – Quick Take1. US Dollar (USD) – 280.17 (spot)The 5-paisa dip keeps the greenback locked inside a 279–282 range that has prevailed since September. One-week forwards are quoted at 280.51, implying a carrying cost of only 0.12 %. Year-end importer demand is muted and exporters continue to sell every uptick above 280.80.*“Liquidity is comfortable; the market is effectively in year-end close mode,”* said a senior treasury official at a local bank.2. Saudi Riyal (SAR) – 74.70The Kingdom’s currency eased 1 paisa to 74.70; one-year forward is 77.22, an annualised 3.4 %—still the tightest curve among major remittance currencies. Exchange companies report brisk walk-in demand from prospective Umrah travellers locking in rates before the seasonal rush.3. UAE Dirham (AED) – 76.28Dirham spot slipped 1 paisa to 76.28; six-month forward is 77.57, implying 3.3 % annualised rupee softness. UAE-based salary disbursements continue to migrate to banking channels, supporting the rupee into the winter months.4. Qatari Riyal (QAR) – 76.85QAR eased 1 paisa to 76.85; 12-month forward is 80.11, a 4.3 % annualised gap—identical to SAR/AED, underscoring uniform Gulf-peg stability.5. Kuwaiti Dinar (KWD) – 911.58The world’s highest-valued currency added Rs 0.4 to 911.58 on the firmer USD cross. Twelve-month forwards at 958.35 pencil out to 5.1 % annualised PKR weakness—marginally wider than GCC peers owing to thinner dinar liquidity.6. Bahraini Dinar (BHD) – 742.77BHD is down 47 paisa at 742.77; six-month forward is 753.70, an annualised 2.9 %—the flattest curve among GCC pairs. Manama-related IT remittances remain steady.7. Australian Dollar (AUD) – 187.70The “Aussie” hit a seven-week high of 187.70 as iron-ore futures climbed to $109/t. One-year forward is 195.03, implying 3.9 % annualised rupee depreciation—almost flat against the SAR curve, meaning AUD/PKR moves are driven purely by commodity swings.8. Canadian Dollar (CAD) – 204.81The “Loonie” recaptured 204.81 as WTI crude steadied near $80/bbl. Twelve-month forwards at 216.45 still pencil out to 5.7 % annualised rupee softness, but spot traders say any further CAD strength will be capped by year-end import payments.Other Majors – Single-Paragraph Round-UpEuro opened at 329.71, up 0.6 % on the week after softer US CPI data; one-year forward is 348.14, translating into 5.6 % annualised rupee weakness. Sterling firmed to 377.60, little moved after BoE rhetoric cooled rate-cut bets. Japanese yen remains the cheapest major at 1.79 per unit, but forwards price 7.1 % annualised PKR decline—the steepest among G-10 pairs. Swiss franc is 354.74; Singapore dollar 218.09; Swedish krona 30.52; Norwegian krone 27.95; Danish krone 44.14; New Zealand dollar 163.13; Chinese yuan 39.97; Turkish lira 6.55; Russian ruble 3.60; Indian rupee 3.12; Bangladeshi taka 2.29—all inside well-worn ranges and implying no event-risk premium ahead of the IMF’s first-quarter 2026 review.Market Context & OutlookThe uniformly narrow forward premiums—barely 5–6 % annualised even for the least-liquid pairs—tell currency desks that both importers and exporters believe the State Bank has enough cover to defend the rupee through the winter remittance season. Reserves have risen $1.5 billion in six weeks to $20.3 billion, while the real effective exchange rate (REER) slipped to 98.2 in November, a level the IMF considers “competitive but not undervalued.” Unless oil spikes above $90 or political noise disrupts the Fund programme, traders expect USD/PKR to remain hand-cuffed to the 279–282 corridor for the rest of 2025, dragging the rest of the currency mosaic along in its slipstream.