Latest news with #Rs0.11
Express Tribune
3 days ago
- Business
- Express Tribune
SBP reserves fall $72m on debt repayments
Listen to article The foreign exchange reserves held by the State Bank of Pakistan (SBP) decreased by $72 million, reaching $14.23 billion, primarily due to scheduled external debt repayments, according to data released by the central bank on Thursday. Meanwhile, the net foreign exchange reserves held by commercial banks remained stable at $5.26 billion, bringing the country's total liquid foreign reserves to $19.50 billion. Moreover, the Pakistani rupee posted a marginal gain against the US dollar, appreciating by 0.04% in the inter-bank market. By the end of trading, the local currency closed at 282.56, marking an improvement of Rs0.11 from the previous day's close at 282.67. On the global front, the US dollar weakened against major currencies amid growing expectations of interest rate cuts by the Federal Reserve and concerns over increasing political influence in key American institutions. The US labour market remains under focus, particularly after last week's disappointing non-farm payroll data, which contributed to the dollar's decline. At the same time, the euro gained ground ahead of scheduled peace talks next week aimed at resolving the ongoing Russia-Ukraine conflict. Meanwhile, gold prices in Pakistan surged, tracking a sharp uptrend in the international market where the yellow metal climbed to a more than two-week high. The global rally was fueled by safe-haven demand after US President Donald Trump's latest tariffs took effect and soft jobs data strengthened expectations of interest rate cut. In the local market, the gold price per tola rose by Rs2,900 to settle at Rs362,200, while 10-gram gold was priced at Rs310,528, reflecting a day-on-day increase of Rs2,487, according to the All Pakistan Sarafa Gems and Jewellers Association. The increase follows Wednesday's uptick of Rs1,300, when the per-tola price reached Rs359,300. Interactive Commodities Director Adnan Agar attributed the continued volatility to "the intensifying global tariff war." The international market hit a high of $3,397 and was standing at $3,385, with a low of $3,365. "If gold closes above $3,400, the next target could be around $3,440-50," he noted. "As long as tariff tension continues – whether it's with India, Russia, Europe or Japan – we expect gold to remain volatile. There's strong fluctuation in prices and the trend could persist for the next few months," Agar added. Globally, spot gold gained 0.6% to $3,388.09 per ounce as of 0956 am ET (1356 GMT), after hitting its highest level since July 23 earlier in the session. US gold futures added nearly 0.7% to $3,455.60, according to Reuters. Furthermore, China's central bank added gold to its reserves in July, its ninth consecutive month of purchases, official data showed on Thursday. China's gold reserves rose to 73.96 million fine troy ounces at the end of July from 73.90 million ounces at the end of June. The country's gold reserves were valued at $243.99 billion at the end of last month, up from $242.93 billion at the end of June, data from the People's Bank of China showed.
Express Tribune
28-05-2025
- Business
- Express Tribune
SBP buys record $223m
Listen to article The State Bank of Pakistan (SBP) reported net foreign exchange (FX) interventions of $223 million in February 2025, bringing total cumulative purchases to $5.3 billion for the first eight months of FY25 (July 2024 to February 2025). As of the end of February, SBP's foreign exchange reserves stood at $11.25 billion. A trend analysis shows fluctuations in monthly interventions, with a peak of $1.156 billion in October 2024 and a low of $154 million in January 2025, underscoring the central bank's active role in managing the external account and maintaining reserves. "SBP conducted net FX interventions of $223m during the month of Feb'25, taking cumulative currency purchases to $5.3b during 8MFY25," noted AKD Research. In 2024 alone, Pakistan's central bank made record foreign exchange purchases exceeding $9 billion from the local market to boost its reserves, prompting mixed reactions. Exchange companies criticised the central bank for excessively favouring exporters without corresponding improvements in performance. They argued that without the SBP's interventions, the rupee might have appreciated to Rs240-250 per US dollar, providing relief to the general public. On Tuesday, the rupee depreciated by 0.04% day-on-day (DoD) to settle at 282.17 against the dollar, a loss of Rs0.11 from Monday's close of 282.06. The currency has weakened by 1.28% on a calendar year-to-date basis and 1.36% on a fiscal year-to-date basis. Additionally, on Tuesday, the SBP held an auction for the outright purchase of Government of Pakistan Ijara Sukuk (GIS) on a deferred payment (Bai Muajjal) basis. It accepted Rs53.7 billion against bids of Rs78.2 billion. In a separate auction of 10-year semi-annual Pakistan Investment Bonds (PIBs), the central bank received bids worth Rs699.9 billion against a target of Rs200 billionan oversubscription of 3.5 times. The SBP accepted Rs187.2 billion, setting the cut-off rate at 12.12% with a current spread of 0.869%, slightly down from the previous spread of 0.999%. Meanwhile, the T-bill auction attracted even stronger interest, with bids reaching Rs3.3 trillion against a target of Rs650 billion, according to Optimus Research. The SBP accepted Rs772 billion, with cut-off yields declining across all tenors: 1-month at 11.10% (down 15 basis points), 3-month at 11.15% (down 9 bps), 6-month at 11.18% (down 9 bps), and 12-month at 11.20% (down 15 bps). Gold prices also declined on Tuesday, in line with global trends. In the local market, the price per tola dropped by Rs3,600 to Rs347,900, while the 10-gram rate fell by Rs3,086 to Rs298,268, according to the All-Pakistan Gems and Jewellers Sarafa Association. A day earlier, the price per tola had dropped by Rs2,600 to Rs351,500. Globally, gold prices fell for the second straight session following improved risk sentiment after US President Donald Trump postponed tariffs on the European Union. Spot gold slipped 1.4% to $3,296.79 an ounce by 1301 GMT, according to Reuters.
