Pakistan's FX improves by $9m, rupee, gold dip
Pakistan's foreign exchange reserves improved, as the State Bank of Pakistan (SBP) reported a modest increase of $9 million during the week ended April 25, 2025, pushing its holdings to $10.21 billion.
The country's total liquid foreign reserves now stand at $15.25 billion, reflecting a steady position in external financial buffers.
Meanwhile, the Pakistani rupee experienced a slight decline against the US dollar, depreciating by 0.03% in Friday's interbank market trading. By the end of the session, the local currency stood at 281.06 per US dollar.
On Wednesday, the rupee had closed at 280.97. The currency market was closed on Thursday due to the Labour Day holiday.
Globally, the US dollar was on track for its third consecutive weekly gain, supported by positive developments in talks between Washington and some of its trading partners, as well as stronger-than-expected economic data that helped ease concerns about investment in the US economy.
Moreover, gold prices in Pakistan fell on Friday, mirroring a drop in the international market. Domestically, the price of gold per tola decreased by Rs1,300, settling at Rs344,500. Likewise, the price for 10 grams of gold dropped by Rs1,114 to Rs295,353, according to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
7 hours ago
- Express Tribune
Nation celebrates Independence Day in spirit
People watch fireworks exploding over the illuminated Minar-e-Pakistan monument during the celebration of Independence Day in Lahore on August 14, 2025. Photo: Reuters Pakistan celebrated Independence Day today (August 14) with festivities held across the country. Pakistani naval cadets play the national anthem at the mausoleum of Muhammad Ali Jinnah, during Independence Day celebrations in Karachi on August 14, 2025. Photo: AFP Rickshaw Parade from Delhi Gate to Lahore Fort lights up Independence Day celebrations on 14 August 2025. Photo: Express Pakistan Railways extends Independence Day greetings to the nation on 14 August 2025. Photo: Express Pakistan Railways extends Independence Day greetings to the nation on 14 August 2025. Photo: Express PIA, the national airline, celebrated nation's 78th Independence Day on 14 August 2025 in the air. Photo: Express PIA, the national airline, celebrated nation's 78th Independence Day on 14 August 2025 in the air. Photo: Express Little stars in green and white light up Independence Day at Police Lines Lahore Day Care Center on 14 August 2025. Photo: Express Little stars in green and white light up Independence Day at Police Lines Lahore Day Care Center on 14 August 2025. Photo: Express Little stars in green and white light up Independence Day at Police Lines Lahore Day Care Center on 14 August 2025. Photo: Express People watch fireworks exploding during the celebration of Independence Day in Islamabad on August 14, 2025. Photo: Reuters Independence Day flag-hoisting ceremony held at Sui Northern Gas head office in Lahore on 14 August 2025. Photo: Express Large crowd joins DG WCLA Maliha Rasheed at Delhi Gate for flag hoisting and patriotic songs on 14 August 2025. Photo: Express
Express Tribune
13 hours ago
- Express Tribune
Rupee extends rally with gains of 20 paisa
The Pakistani rupee extended its gains against the US dollar on Wednesday, rising 20 paisa, or 0.07%, in the inter-bank market. The currency closed at 282.22 compared to the previous day's closing level of 282.42. It was the rupee's fifth consecutive day of appreciation, driven by improved market sentiment amid an ongoing crackdown on illegal currency dealers and smugglers. Last week, a court handed five-year prison terms to three illegal currency traders and fined Rs1 million each for engaging in unlawful foreign exchange operations. In global trade, the US dollar slipped after soft US inflation data reinforced expectations of a Federal Reserve rate cut next month. Political developments in Washington, including President Donald Trump's moves to tighten control over US institutions, also weighed on the greenback. The dollar index hit a more than two-week low, making bullion cheaper for overseas buyers, while the yield on the benchmark 10-year Treasury note edged lower, according to Reuters. Meanwhile, gold prices in Pakistan inched lower, diverging from the international trend, where the metal gained on a weaker US dollar and falling Treasury yields. Mild US inflation data reinforced expectations of a Federal Reserve rate cut in September, with markets also factoring in the possibility of further easing later this year. In the local market, the price of gold per tola fell Rs200 to Rs358,100, according to the All Pakistan Sarafa Gems and Jewellers Association. The rate for 10 grams declined Rs171 to Rs307,013. On Tuesday, gold had dropped by Rs500 to Rs358,300 per tola. Interactive Commodities Director Adnan Agar said global gold prices were moving within a narrow range, with Wednesday's high at $3,370 per ounce and low at $3,342. 'The market was trading at $3,355 and waiting for fresh triggers,' he noted. Agar pointed to the upcoming geopolitical events, including a Russia-US-Ukraine summit this weekend, as potential drivers. 'If the summit fails, gold prices are likely to rise. A breakthrough could push prices lower,' he said. Agar added that markets were also looking ahead to the US Federal Reserve's policy decision next month, where there was a strong likelihood of an interest rate cut, a move that could further influence gold's direction. Spot gold gained 0.4% to $3,357.59 per ounce by 12:10 pm ET (1610 GMT). US gold futures for December delivery rose 0.3% to $3,408.50. 'Gold is buoyant on heightened expectations of a September Fed rate cut, following benign inflation data and July's weak non-farm payrolls,' said Nikos Tzabouras, senior market analyst at
Express Tribune
17 hours ago
- Express Tribune
SBP warns of significant risks
The State Bank of Pakistan (SBP), in its latest Monetary Policy Report titled "Staying the Course", said that while macroeconomic conditions have improved in recent quarters, significant risks still cloud the outlook. Stubborn inflation, external vulnerabilities, and deep-rooted structural constraints will require sustained reforms and prudent policymaking to ensure stability. Domestically, the SBP underscored persistent structural weaknesses limiting growth potential. Drawing on its Half Yearly Report for 2024-25, it cited low productivity, weak innovation, poor skills investment, and inefficiencies in industrial processes as major hurdles to competitiveness. Labour market monitoring is another challenge. Pakistan's official labour force statistics are released only annually and often irregularly, leaving information gaps. To address this, the SBP has developed high-frequency labour market indicators from alternative sources like online job postings and newspaper ads. These suggest labour demand is gradually recovering in the second half of FY25, especially in the services sector. Agriculture remains critical yet vulnerable. Satellite data shows the vegetation index for cotton crops fell this year by 5.7% in Sindh and 2.4% in Punjab, mainly due to reduced cultivation. Recent rainfall has improved water storage and soil moisture for other Kharif crops, but climate variability and water management remain long-term threats. On fiscal policy, the SBP stressed aligning fiscal and monetary measures to ensure stability. Failure to contain fiscal deficits or reduce reliance on external borrowing could heighten debt risks and crowd out private investment. Structural reforms in energy pricing, taxation, and governance are essential to support monetary policy. The central bank also acknowledged limitations in Pakistan's traditional data systems, which are often slow and infrequent. It has expanded its big data initiative, using satellite-based indicators like nighttime light intensity for urban activity, nitrogen dioxide emissions for industrial output, and vegetation indices for agriculture. These tools provide timely insights but remain complementary to official data. Inflation has eased from last year's highs but is still above the SBP's medium-term target of 5-7%. The moderation is due to lower global commodity prices, better domestic supply, and a stable exchange rate. However, "sticky" core inflation, excluding volatile food and energy prices, remains a concern. The SBP flagged volatile international oil and energy prices as a major risk. Geopolitical tensions in the Strait of Hormuz and global demand swings could spike fuel costs, feeding into local prices and widening the import bill. "Exchange rate pass-through remains an important channel through which external shocks can transmit to domestic inflation," the report noted. The global monetary environment is also challenging. With the US Federal Reserve keeping interest rates high, narrowing the interest rate gap too quickly could trigger capital outflows. This could pressure the rupee, weaken external buffers, and undermine the disinflation process. On trade, the SBP pointed to rising global protectionism and tariff disputes that could disrupt supply chains, raise import costs, and dampen export demand. Pakistan's heavy reliance on textiles makes it vulnerable to such shocks. The SBP expects recent policy rate cuts to support investment and consumption in coming quarters but warns against complacency. "Monetary conditions remain appropriately tight on a forward-looking basis to anchor inflation expectations," it said, adding that lasting stability will require prudent monetary management, fiscal discipline, and structural reform. Finance Minister Muhammad Aurangzeb said there is more room for the SBP to cut the key policy rate from 11%, citing positive indicators. Speaking to businessmen in Islamabad ahead of a Moody's ratings update, he expressed hope for similar upgrades from other agencies following Fitch and S&P. "We are hopeful of progress in terms of the policy rate going south," he said. Aurangzeb stressed that it was his personal view that a cut could come toward year-end, but the central bank would have the final say. The next policy decision is due September 15. The SBP kept rates at 11% on July 30, defying analyst forecasts of a 50-100 basis point cut. It cited a deteriorating inflation outlook due to higher energy prices, with July inflation accelerating to 4.1% year-on-year. Following Moody's upgrade, Pakistan's international bonds rose up to 1 cent, trading between 90 and 100 cents on the dollar, reaching their highest levels since early 2022, when debt fears had pushed them as low as 30 cents. WITH ADDITIONAL INPUT FROM REUTERS
