Tag: European Central Bank

  • Pakistani rupee appreciates 0.02% against US dollar to close at Rs283.21

    Pakistani rupee appreciates 0.02% against US dollar to close at Rs283.21

    In a continuing upward trend, the Pakistani rupee demonstrated resilience in the inter-bank market by securing gains against the US dollar for the fifth consecutive session, appreciating by 0.02 per cent on Monday.

    According to the State Bank of Pakistan (SBP), the rupee closed at Rs283.21, marking an increase of Re0.05.

    Throughout the preceding week, the rupee exhibited a noteworthy appreciation, gaining Re0.61 or 0.21 per cent to settle at Rs283.26 against the US dollar in the inter-bank market.

    This marks the fifth consecutive week of the rupee’s advancement against the dollar, a momentum attributed to the recent announcement of a staff-level agreement (SLA) between Pakistan and the International Monetary Fund (IMF) concerning the first review of the $3 billion Stand-by Arrangement (SBA).

    Since the revelation of the SLA on November 15, the local currency has strengthened by Rs4.88, or 1.7 per cent, against the greenback.

    Meanwhile, on a global scale, currencies commenced the week with caution following significant fluctuations in the previous week, driven by various central bank meetings, including rate decisions from the Federal Reserve, the European Central Bank (ECB), and the Bank of England (BoE).

    The greenback, which had been bolstered throughout most of 2022 and 2023 by aggressive rate hikes from the Fed and expectations of prolonged higher rates, experienced a notable decline of approximately 1.3 per cent against a basket of currencies last week in response to the outcomes of the Fed’s policy meeting.

  • Gold price drops by Rs2,800 per tola amidst Pakistani rupee appreciation

    Gold price drops by Rs2,800 per tola amidst Pakistani rupee appreciation

    Domestic bullion prices in Pakistan experienced a significant drop, with both gold and silver witnessing declines. The 24-karat gold closed at Rs220,200 per tola, falling by Rs2,800, while the price of 10-gramme 24-karat gold went down by Rs2,401, closing the day at Rs188,786 per tola. Additionally, 10-gramme 22-karat gold stood at Rs173,054 per tola, down by Rs2,200.

    The drop in gold and silver prices can be attributed to the recent appreciation of the Pakistani rupee (PKR). The PKR managed to snap a three-day losing streak by appreciating Rs2.18 against the US dollar in the interbank session on Thursday. Since gold is denominated in US dollars, when the PKR strengthens against the dollar, the value of gold in PKR terms diminishes.

    Similarly, the price of silver also witnessed a decline in the domestic market. The price of 24-karat silver fell by Rs50 to close at Rs2,750 per tola, and the price of 10-gramme 24-karat silver closed at Rs2,358 per tola, losing Rs42.86.

    The recent appreciation of the Pakistani rupee, coupled with global interest rate developments, has influenced the decline in gold and silver prices in the domestic market. Investors are now keeping a close eye on economic indicators and global central bank decisions to anticipate potential shifts in precious metal prices.