- In interbank market, rupee fell 2.01 or 0.93%.
- The local unit closes at 216.66 against dollar.
- Rupee fell 0.31% against greenback last week.
KARACHI: The Pakistan rupee lost ground against the US dollar Monday ahead of the monetary policy announcement — scheduled for today — and the speculations surrounding the International Monetary Fund (IMF).
In the interbank market, the rupee fell 2.01 or 0.93% against the dollar to close at 216.66, down from Friday’s close of 214.65, according to data from the State Bank of Pakistan (SBP).
The greenback traded at 213-214 during the outgoing week. It closed at 213.98 per dollar on Monday and finished at 214.65 on Friday. The rupee fell 0.31% against the greenback last week.
Economist and former adviser to the federal ministry of finance Dr Khaqan Hassan Najeeb said the local unit slipped by Rs2 against the dollar due to political developments and the strengthening of the dollar internationally.
“But we also know the economic situation remains challenging. SBP reserves are weak at $7.8 billion — hardly enough for over a month of imports,” he said.
Non-oil imports are curbed by SBP by rationing the opening of letter of credit (LC), the economist said, adding that oil is already in excess, so oil imports are low.
“Point being, we are operating in a restricted environment, and there would be import needs piling up.”
Getting flows including IMF money, multilateral and bilateral monies, and new foreign direct investment (FDI) is essential to normalise the balance of payments.
“Of-course exports drop and remittance slowdown in July must be looked at carefully.”
Talking to The News, a trader said that apart from forex inflows and outflows, the monetary policy decision will be instrumental to gauge the rupee’s future direction.
Another factor that weakened the rupee was a shortage of greenback in the open market, which moved up the rate of the interbank price of the dollar as well.
The government lifted a ban on the import of non-essential and luxury goods to meet a condition of the IMF ahead of the board’s meeting later this month to revive the loan programme.
However, it announced the imposition of heavy duties on completely built units cars, mobile phones, and electronic appliances to discourage imports.
The market will also evaluate the impact of opening up luxury imports on the rupee, according to traders.
The foreign currency reserves have started to recover. The foreign reserves held by the central bank slightly increased by $67 million or 0.9% to $7.9 billion as of August 12.
Gold prices in Pakistan see record increase
Pakistan’s gold prices surged by an astounding Rs3,500 on Saturday. The cost of 24-karat gold increased to Rs220,300 per tola as a result of this increase in gold prices across the nation.
The price of 10 grammes of 24-karat gold increased correspondingly, according to dealers, by a significant Rs3,001, to trade at Rs188,872. In a similar vein, 10 grammes of 22-karat gold experienced an increase in price, trading at Rs173,132.
These oscillations have a strong correlation with shifts in the US dollar’s value, demonstrating the complex interplay between gold prices and exchange rates. This emphasises how local gold prices are impacted by events related to the global economy.
Additionally, the price of 24-karat silver increased by a record Rs30 to trade at Rs2,600. The price of gold increased significantly on a global scale as well, by $36, to $2,103 per ounce.
It’s important to understand that fluctuations in the worldwide market can cause considerable fluctuations in gold rates in Pakistan throughout the day. The gold rates that are offered are obtained from reliable sources, mostly situated in Karachi and Multan.
It is recommended that individuals seek the advice of nearby gold merchants and jewellers for the most precise and current information on gold prices.
The gold price in Pakistan today
According to the All Sindh Sarafa Jewellers Association, the price of 10 grammes of 24 karat gold increased by Rs772 to Rs184,928 from Rs184,156, while the price of 10 grammes of 22 carat gold increased to Rs169,517 from Rs168,810.
These oscillations are strongly correlated with shifts in the US dollar’s value, demonstrating the complex interplay between gold prices and exchange rates.
This emphasises how local gold prices are impacted by events related to the global economy.
On the other hand, the cost of 24-karat silver was constant at Rs 2,570. Globally, too, the price of gold increased somewhat by $9 to $2,057 per ounce.
Pakistan receives a $2 billion loan from China, according to the finance minister
The $2 billion loan was one year ahead of schedule and became due in March. According to reports, Beijing had informed Islamabad of the decision.
The International Monetary Fund granted Pakistan’s cash-strapped economy a $3 billion standby arrangement last summer, but the country is still battling to recover from the financial crisis.
According to ratings firm Fitch, one of the top concerns confronting the next administration would be obtaining funding from bilateral and multilateral partners due to Pakistan’s precarious foreign situation, as was stated last week.
This event occurs one month after Anwaar-ul-Haq Kakar, the acting prime minister, asked for a $2 billion loan to be rolled over for a year in a letter to his Chinese counterpart.
In his letter, Kakar also expressed gratitude for China’s efforts to lessen Pakistan’s load
of foreign payments.
It is to be noted that Pakistan acquired safe deposits of $4 billion from China to address the balance of payments issue.
PTI and SIC agreed to choose Umar Ayub as NA’s opposition leader.
After a recount, PML-N keeps its seat in the Balochistan Assembly.
Rahat Faeth Ali Khan receives a clean sheet from FIA
Barwaan Khiladi: Kinza Hashmi discusses her role as Alia
Snap launches tools for parents to monitor teens’ contacts
WATCH: Pakistani traveller deported from Dubai for damaging plane mid-air
Learn First | How to Create Amazon Seller Account in Pakistan – Step by Step
Sajjad Jani Funny Mushaira | Funny Poetry On Cars🚗 | Funny Videos | Sajjad Jani Official Team
Pakistan Reaction On Huge Win Against India | Pakistani Celebs Celebrate World T20 Cricket
Elections7 hours ago
Election for president: Asif Zardari’s candidature documents are accepted
Entertainment7 hours ago
Nehaal Naseem literally copied me from head to toe: Aima Baig
Pakistan6 hours ago
Asif Ali Zardari “seeks” the MQM-P’s endorsement for the presidential race.
Tech7 hours ago
Bitcoin rises beyond $64,000 as new records are set.
Money7 hours ago
IMF recommends Pakistan jack up GST on medicines and petroleum to 18 p.c.
Sports7 hours ago
Michael Clarke gears up for commentary stint in PSL 9
Elections6 hours ago
Shehbaz Sharif was chosen to serve as Pakistan’s 24th prime minister.
Latest News5 hours ago
Rahat Faeth Ali Khan receives a clean sheet from FIA