KARACHI:
The Pakistani rupee continued its upward momentum against the US dollar on Monday, appreciating by 0.02% in the inter-bank market. At the close of trading, the local currency was quoted at 282.66, marking a modest gain of six paisa.
During the previous week, the rupee had advanced by 73 paisa, or 0.26%, closing at 282.72 compared with 283.45 a week earlier, according to data from the State Bank of Pakistan (SBP).
AKD Securities noted that the rupee has strengthened by Rs2.31 against the greenback over the past nine trading sessions.
On the global front, the US dollar edged slightly higher on Monday after suffering a blow last week from disappointing jobs data and political turbulence following President Donald Trump’s dismissal of a top labour official.
US Labour Department figures released on Friday showed job growth in July fell short of expectations, while non-farm payrolls for the previous two months were sharply revised downwards by 258,000, highlighting further weakness in the labour market and bolstering expectations of imminent interest rate cuts by the Federal Reserve.
Meanwhile, gold prices in Pakistan rose, tracking gains in the international market, where the precious metal extended its upward momentum for a third consecutive session. The rally was driven by renewed expectations of interest rate cuts by the US Fed, following the release of softer economic data last week.
According to the All Pakistan Sarafa Gems and Jewellers Association, the price of gold per tola increased by Rs500 to settle at Rs359,500. Meanwhile, the price of 10 grams rose by Rs429 to Rs308,213.
The latest uptick comes after a sharp jump on Saturday, when gold surged by Rs6,100 per tola, reaching Rs359,000.
Commenting on the market trend, Interactive Commodities Director Adnan Agar said gold prices continued to show strength. “Monday’s high was $3,385 and the low at $3,344. The market was later hovering around $3,378. If it closes above $3,375-80, there is potential for gold to test $3,440-50 levels again,” he said.
He added that Friday’s economic data came out in favour of gold, boosting sentiment and triggering a recovery in global prices. “If gold maintains its strength and closes above key levels, further upside is likely in the coming sessions,” Agar noted.
Spot gold rose 0.3% to $3,373.22 per ounce as of 1315 GMT, its highest level since July 24. US gold futures gained 0.8% to $3,427.10.
“The odds are stronger now for a rate cut in September and even stronger for another rate cut in December. That, coupled with the headwinds of inflation, I think, is pretty bullish for gold,” said Daniel Pavilonis, Senior Market Strategist at RJO Futures.
