KARACHI: The State Bank of Pakistan released its Mark-to-Market Currency Rates for August 6, 2026, and for the most part the rupee held fairly steady against the US Dollar (USD).
The US Dollar was quoted at 277.7228 in the ready market, down just four paisas from 277.7732 last Tuesday; The Saudi Riyal (SAR) firmer at 73.9510 from 73.9683. The UAE Dirham edges up to 75.6202 from 75.6339. The Canadian Dollar moves up to 198.2248 from 197.8512 and so wipes nearly 37 paisas from the brief respite importers enjoyed earlier.
The British Pound (GBP) is marginally higher at 373.6900 from 373.6883.
The Bahraini Dinar (BHD) and Omani Riyal (OMR) are firmer at 736.5677 and 721.3299 respectively.
The forward curve continues to signal just one thing: a slow grind of the rupee lower, against the greenback. The one-month dollar forward is pricing in another 68 paisas or so of weakening over 30 days, at 279.4072 while the three-month dollar forward at 282.0542 and the six-month at 284.7212 are treading that gently uphill path that the forwards have been charting since early July. Only the one-year forward at 292.1250 at a clip of about 5.2% per annum is giving a clear annual view-and even then, it has been stable for more than five weeks, indicating the market has stopped arguing about direction and is simply waiting to find out when that pace picks up speed.
The shifts in the Riyal and Dirham will not be apparent at any household level among the remittance receiving families in Punjab, KP and Azad Kashmir. A worker sending home 1000 Riyals will now get roughly Rs73,951, some Rs17 fewer than a week ago. The equivalent 1000 Dirhams will fetch them an estimatedRs75,620, Rs14 short of three Tuesdays back.
It is loose change, likely absorbed by exchange house spreads or bank commissions.
For the millions of Pakistani homes dependent on money sent from the Arabian Gulf, first August has delivered, almost as promised, everything that July delivered, except for the hope that things would start looking up. The dollar has traded in a less-than-39-paisa-range for 32 sessions, the SBP’s managing hand a clear driver of this remarkable, though not promising stability.
The ascent back above 198 level is some bad news for Pakistani importers. The Canadian Dollar is trading at Rs198.22, retracing all the losses it had shown over the three trading days ( July 31 to Aug 3) to be again trading at the level seen earlier in July at Rs198.22 per USD. The consumers of pulses, lentils, and equipment from Canada must expect to pay some extra while paying for their import bills. The one year CAD forward at 211.8444 which projects a steeper appreciation path, versus CAD for rupee than dollar projects more pressure on this pair from the US dollars.
The Turkish Lira in the ready market at 5.8410 provides perhaps the best gauge of economic interaction between two economies that investors often pair due to their shared currency-weakening predicaments-namely, high inflation and reliance on external finance-yet differ significantly on the level of money. Given Turkey’s far deeper money supply base than Pakistan’s, it makes a lot more sense, in a global comparative context, why a lira now sells at just a fraction of the rupee-dollar equivalent! The 1-yr TRY forward suggests the lira would strengthen vis-a-vis the rupee, mainly given the lingering nature of Turkish currency problems rather than any inherent Pakistani strength. Pakistan’s export competition against Turkey for European market share and for buyers in Germany, UK and France all come with costs set by this exchange rate: as the lira weakens faster than the rupee, Pakistani exports cost more at the margin relative to Turkish rivals, reducing export volumes.
The Indian Rupee is another indicator that one keeps an eye out for, not so much for trade between the countries (as direct trade is nil), but rather for comparisons on economic strengths. At Rs2.9162 in the ready market, it has again notched up a barely meaningful 0.01% against the dollar as against the Rs2.91 seen last Tuesday, narrowing the relative value somewhat for Pakistan. In the 1 year forwards, the Indian rupee remains expected to slide versus Pakistan’s, the Pakistani one’s loss at 2.9850 implying a greater widening spread over India’s growth, inflation and current account deficits for Pakistan relative to its giant neighbor.