KARACHI:The Pakistani currency depreciated by Rs0.05 to Rs277.85 against the US dollar in the inter-bank market, as uncertainty over the International Monetary Fund (IMF) Executive Board’s final approval for a $7 billion loan programme later in the day impacted the currency market on Wednesday.
In the open market, the Pakistani rupee appreciated by Rs0.12 day-on-day, closing at Rs280.33 per US dollar, marking a cumulative gain of Rs0.37 over the last three consecutive working days, according to the Exchange Companies Association of Pakistan (ECAP).
However, some currency traders in the interbank market remain uncertain about the International Monetary Fund’s (IMF) approval of the financial program for Pakistan. This uncertainty contributed to the reversal of the upward trend seen in the domestic currency earlier in the week.
Despite this, Finance Minister Muhammad Aurangzeb and State Bank of Pakistan (SBP) Governor Jameel Ahmad expressed strong confidence in the IMF program during the day’s proceedings.
According to SBP data, the rupee experienced slight selling pressure, closing at Rs277.85 per US dollar, down marginally from its five-and-a-half-month high of Rs277.80 achieved on Tuesday. Over the past two weeks, the rupee has gained a net Rs0.90 per dollar, closing on a positive note on most trading days. A currency dealer attributed the Rs0.05 decline to exporters continuing to sell dollars at lower premiums on futures contracts, indicating their belief that the rupee will remain stable in the short to medium term. The dealer projected the exchange rate to stabilize between Rs275 and Rs278 per dollar by December 2024, given an improved supply of foreign currency in the system relative to demand.
Gold Prices Hit Record High
Meanwhile, gold prices in Pakistan surged by Rs2,500 per tola (11.66 grams), reaching an all-time high of Rs275,500 for the second consecutive working day. This increase reflects the global trend, where the price of gold rose by $25 per ounce (31.10 grams) to a new record high of $2,653, as reported by the All Pakistan Sarafa Gems and Jewellers Association.
The sharp rise in gold prices is in line with the ongoing global surge, reflecting investor sentiment amid economic uncertainties and increasing demand for safe-haven assets.