Rupee Extends Winning Streak, Gains 20 Paisa Against US Dollar
Rises to 282.22/$ in inter-bank; gold slips Rs200 despite global hike
KARACHI – The Pakistani rupee notched its fifth straight day of gains on Wednesday, strengthening by 20 paisa against the US dollar in the inter-bank market. The currency closed at 282.22, up from 282.42 a day earlier, marking a 0.07% appreciation.
Traders credited the continued rally to improved market sentiment, bolstered by an ongoing crackdown on illegal currency dealers and smugglers. Just last week, three currency traders were handed five-year prison terms and fined Rs1 million each for unlawful foreign exchange operations.
In global markets, the dollar slipped after softer-than-expected US inflation data reinforced bets on a Federal Reserve interest rate cut next month. Political developments in Washington — including moves by President Donald Trump to tighten control over US institutions — added further pressure on the greenback.
The dollar index fell to its lowest level in over two weeks, making gold more affordable for overseas buyers. Yields on 10-year US Treasury notes also eased.
Gold Prices Diverge Locally and Globally
While gold prices edged higher internationally, the local bullion market moved in the opposite direction. According to the All Pakistan Sarafa Gems and Jewellers Association, the price of gold per tola dropped by Rs200 to Rs358,100, while the 10-gram rate slipped Rs171 to Rs307,013. On Tuesday, gold had already declined by Rs500 per tola.
Interactive Commodities Director Adnan Agar said global gold was trading within a tight band, with Wednesday’s high at $3,370 per ounce and a low of $3,342. “The market hovered around $3,355, waiting for a fresh catalyst,” he noted.
Agar pointed to this weekend’s planned Russia-US-Ukraine summit as a potential market mover. “Failure at the summit could send gold higher, while a breakthrough might push prices lower,” he said.
Investors are also watching the US Federal Reserve’s policy meeting next month, where an interest rate cut appears likely — a move that could further influence gold’s trajectory.
By 12:10 pm ET (1610 GMT), spot gold was up 0.4% at $3,357.59 per ounce, while US gold futures for December delivery gained 0.3% to $3,408.50.
“Gold remains buoyant on heightened expectations of a September Fed rate cut, following soft inflation data and weaker July jobs numbers,” said Nikos Tzabouras, senior market analyst at Tradu.com.
Published in Daily Pak, August 14th, 2025
