Reserves edge up, rupee gains for 4th week
According to data released by the central bank, the country's total liquid foreign reserves stood at $19.497 billion. Of this, commercial banks held net reserves of $5.254 billion, while the SBP accounted for the remaining $14.243 billion.
Moreover, on Friday, the SBP injected around Rs12 trillion into the banking system through a reverse repo auction. The market operation included Rs191 billion for seven-day tenors at 11.04% and Rs11.812 trillion for 14-day tenors at 11.01%.
The Pakistani rupee extended its upward momentum, marking its fourth consecutive week of gains against the US dollar.
According to Ismail Iqbal Securities, the local currency appreciated 0.06% day-on-day to close at 282.06 against the greenback. On a calendar-year-to-date basis, however, the rupee has depreciated 1.25%, while in the current fiscal year to date, it has gained 0.60%.
AKD Securities noted that the rupee gained for the fourth consecutive week against the US dollar.
Meanwhile, gold prices in Pakistan fell, tracking global trends, where the yellow metal edged higher but remained on course for a weekly loss as hotter-than-expected US inflation data dampened prospects of near-term interest rate cuts. Market attention has shifted to the much-anticipated meeting between US President Donald Trump and Russian President Vladimir Putin.
In the local market, the price of gold per tola dropped Rs1,000 to Rs357,100, according to the All Pakistan Sarafa Gems and Jewellers Association. The price of 10-gram gold also declined, settling at Rs306,155, after a decrease of Rs858. Earlier in the week, on Wednesday, gold had slipped by Rs200 per tola to Rs358,100.
Interactive Commodities Director Adnan Agar noted that the gold market has seen limited movement, with prices fluctuating within a narrow range of about $10 to $15. "The market is relatively stable because of the Russia-US summit. Any significant shift will likely be seen on Monday once the outcome of talks becomes clear," he said.
Spot gold rose 0.2% to $3,342.62 per ounce by 11:16 am EDT (1516 GMT), but was down 1.7% for the week, according to Reuters.
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