The rupee posted moderate gains in both the currency markets against dollar during the outgoing week, boosted by strong foreign inflows and positive macroeconomic indicators. The rupee closed at 155.28 against the greenback on Monday and closed at 155.06 on Friday while in the open market the rupee gained 25 paisad to close at 155.10 against the dollar.
Domestic one tola and 10 gram gold prices hit fresh peak of Rs78,100 per tola and Rs66,958 per 10 grams, respectively, as international bullion prices surpassed $1,400 before retreating, still holding near a six-year high on the US central bank’s dovish stance on monetary policy. Locally, gold prices saw a surge of Rs800 per told and Rs686 per 10 grams over Thursday’s rate.
Pakistani currency weakened to a record low of Rs156 to the US dollar at the inter-bank market on Friday. The currency freshly lost Rs3.10 from yesterday’s close. A long list of import orders, which were not processed by banks due to Eid holidays, and external debt and interest payment in June end, are the cause of this latest devaluation.
Pakistani currency dramatically recovered a significant Rs1.42 to Rs148.21 to the US dollar in the inter-bank market following the recent massive hike by central bank in the key interest rate, taking it to 12.25%, made the rupee attractive. Banks have made record investment of PKR 3.1 trillion in three-month treasury-bills in the first auction of government securities after the rate hike.