The Pakistani rupee slid further in the inter-bank market on Monday, continuing its downward trend due to increased import payments and ongoing dollar buying by the State Bank of Pakistan (SBP).
According to official data from the SBP, the rupee closed at Rs284.72, showing a slight depreciation of 26 paisa (0.09%) from the previous session. This follows a weekly drop of 49 paisa (0.17%), as the currency ended last week at Rs284.46.
💬 Why Is the Rupee Losing Value?
Ali Najib, Deputy Head of Trading at Arif Habib Ltd, explained the fall is linked to:
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Higher dollar demand for import payments
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Profit repatriation by multinational firms
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Market uncertainty over external debt repayments
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Continued SBP dollar purchases to build foreign exchange reserves
🏦 SBP’s Dollar Strategy: Building Reserves
Despite rising reserves, the central bank’s dollar buying spree has reached over $6 billion in the first 8 months of FY25 (8MFY25). The SBP aims to strengthen reserves with support from:
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Strong remittances
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IMF funding
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Debt rollovers
However, global dollar strength and market speculation continue to put pressure on the rupee.
“Without stronger inflows or tighter policies, mild rupee depreciation may continue in the short term,” warned Najib.
🪙 Gold & Silver Prices Surge as Global Market Reacts
🟡 Gold Prices Increase in Pakistan
On the same day, gold prices in Pakistan saw a modest rise, reflecting movements in the international bullion market. According to the All Pakistan Sarafa Gems and Jewellers Association:
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Gold per tola increased by Rs1,600 to reach Rs359,700
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10-gram gold price rose by Rs1,371 to Rs308,384
🥈 Silver Hits 13-Year Global High
Globally, silver prices surged, touching the highest level since September 2011. In Pakistan:
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Silver per tola was recorded at Rs4,087
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Spot silver rose 1.1% to $38.78 per ounce
🌍 What’s Driving Precious Metal Prices?
Adnan Agar, Director at Interactive Commodities, said geopolitical tensions and economic concerns are pushing investors toward safe-haven assets like gold and silver.
“Gold hit a high of $3,375 before slightly falling to $3,345. The market remains volatile due to trade tariff talks,” said Agar.
He referenced US President Donald Trump’s recent tariff threats on Europe and Mexico, which sparked concerns in global markets.
📊 Gold Outlook: Volatility Ahead
As of 1337 GMT, spot gold remained steady at $3,356.95 per ounce, after peaking earlier in the session – its highest level since June 23.
Market analysts expect gold prices to remain volatile, influenced by:
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US economic indicators
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Global trade developments
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Investor sentiment
✅ Conclusion
With the rupee under pressure and precious metals gaining strength, Pakistan’s economy continues to face headwinds from external factors, currency volatility, and global market shifts. Monitoring exchange rates, gold prices, and economic policies is essential for businesses and investors alike.
