KARACHI: The Pakistani rupee was largely unchanged on Tuesday after the State Bank of Pakistan (SBP) cut interest rates in a surprise move.The local currency unit closed at 280.3 per dollar, compared with the previous close of 280.31.
The rupee also remained stable in the open market. It ended at 281.35 against the dollar, unchanged from the previous close, according to currency rates published by the Exchange Companies Association of Pakistan (ECAP).
On Monday, the SBP surprised the market with a 50 basis points cut in the policy rate, a move that was largely unpriced, Chase Securities said in a note.“Complementing this positive monetary signal, the government’s decision to reduce diesel prices by Rs14 per litre is expected to ease transportation costs, lower inflationary pressures, and provide a modest boost to economic activity across sectors,” it said.
“On the macro front, SBP’s foreign exchange reserves have surpassed the December 2025 target of $15.5 billion, reinforcing confidence in external account stability and strengthening the overall macro narrative,” it added. “This development, alongside easing domestic inflation dynamics, underpins improving investor sentiment.”
