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Rupee Makes Marginal Gain as Inflation Accelerates

The 11.7% year‑on‑year inflation reading raises pressure on monetary policy; modest weekly reserve gains give limited external cushion.

Overview

  • The Pakistani rupee posted only a marginal inter‑bank gain and is trading around 278.4 per US dollar, reflecting near‑term stability in wholesale FX markets.
  • Pakistan Bureau of Statistics reported headline consumer inflation at 11.7% year‑on‑year for May 2026, the highest reading since June 2024.
  • The State Bank of Pakistan said its usable foreign exchange reserves rose by about USD 43 million to USD 17.19 billion, with total liquid reserves at USD 22.64 billion as of the end of May.
  • Retail open‑market tables show slightly wider buy/sell quotes than inter‑bank rates, with reported dollar rates near 278.15 for buying and about 279.6 for selling, reflecting dealer and customer spreads.
  • The SBP has rolled out a QR payment system to boost cashless transactions, a structural step that could reduce cash demand over time and affect remittance flows and domestic liquidity patterns.