By The Pakistani rupee continued its downward slide against the US dollar on Monday, slipping by 0.09% in the inter-bank market.
According to the State Bank of Pakistan (SBP), the rupee closed at Rs284.72, reflecting a loss of 26 paisa compared to the previous closing rate. This marks a continuation of last week’s trend, where the local currency declined by 49 paisa (0.17%), ending at Rs284.46 per dollar.
📦 What’s Causing the Rupee’s Fall?
Ali Najib, Deputy Head of Trading at Arif Habib Ltd, explained that the rupee is under pressure due to:
- Rising import bills
- Multinational companies sending profits abroad
- Cautious investor sentiment ahead of large external debt repayments
Moreover, the SBP is actively purchasing US dollars from the open market to boost foreign exchange reserves, having acquired over $6 billion in the first 8 months of FY25. This action, supported by remittances, IMF inflows, and debt rollovers, is part of a broader reserve-building strategy.
Despite improving reserves, speculation in currency markets and the global strength of the US dollar continue to add pressure on the rupee.
“Unless we see stronger dollar inflows or policy tightening, the rupee could experience more mild devaluation in the near future,” said Najib.
🪙 Gold & Silver Prices Rise Amid Global Market Trends
📈 Gold Gains Ground in Pakistan
Gold prices in Pakistan edged higher on Monday, aligning with international market movements. The yellow metal remained stable after hitting a three-week high, driven by renewed concerns over trade tensions and upcoming US economic data.
According to the All Pakistan Sarafa Gems and Jewellers Association:
- Gold price per tola increased by Rs1,600, reaching Rs359,700
- 10-gram gold price rose by Rs1,371, now at Rs308,384
🥈 Silver Hits 13-Year Global High
In international trading, spot silver surged by 1.1%, reaching $38.78 per ounce, its highest level since September 2011. Locally, 24-karat silver was priced at Rs4,087 per tola.
📊 Why the Precious Metals Are Rising
Analysts attribute the rally in precious metals to rising economic uncertainty and geopolitical tensions.
Adnan Agar, Director at Interactive Commodities, noted that gold responded sharply to recent comments from US President Donald Trump about potential tariffs on Europe and Mexico.
“Gold hit a peak of $3,375 before easing to $3,345,” said Agar. “We may see a short-term dip, but with global trade tensions, volatility in gold prices is likely to continue.”
🌍 Focus on Global Trade and US Economic Indicators
Globally, spot gold was steady at $3,356.95 per ounce (as of 1337 GMT), after touching its highest level since June 23, according to Reuters.
The market is closely watching trade policy updates and key macroeconomic data from the US, which are expected to further impact the direction of gold and silver prices worldwide and in Pakistan.
