The value of Pakistani rupee against the US dollar has touched another historical low, reaching Rs. 168.18 in the interbank market after an increase of Rs. 0.52 on Monday.
The previous all-time low was recorded on April 7, 2020 at 167.89 on a closing basis.
Yaqoob Abubakar from Tresmark told ProPakistani that the Pakistani rupee was under pressure due to demand from importers and corporate buyers as well as repayment of foreign debts.
“Dealers said that due to the ending of the fiscal year, demand from foreign companies was extraordinary.A further ease in lockdown for businesses has also increased the demand for imported goods,” he added.
A.A.H Soomro, managing director at Khadim Ali Shah Bukhari Securities told ProPakistani,
“These are market movements and do not warrant SBP’s intervention. After interest rate decline, speculators are expecting a run on the dollar. I see Current and Capital Account under control for a few months.”
Currency dealers said that the rupee is also under pressure due to the end of the fiscal year, as most multinational and foreign companies send profits to their parent companies.
According to Daily Forex, The USD/PKR continues to demonstrate a weaker foundation of value for the Pakistani Rupee. The USD/PKR is certainly a speculative trade, but under the present market conditions which show the USD/PKR is being bought and what appears to be weaker risk appetite globally, staying long and remaining a buyer of the US Dollar against the Pakistani Rupee seems a logical speculative trader.
Thee support levels appear to be rather firm near the 166.9000 levels. Volatility is a staple of the USK/PKR but speculators who choose to trade this forex pair already know this fact. Unless a trader has intimate knowledge of the Pakistan government and its corporation’s commercial activities, taking a position of the USD/PKR is essentially done via technical charts and reading of global market sentiment.
However, the stronger support levels of the USD/PKR which have developed the past few trading sessions could prove enticing and worthwhile for speculators.
Gold prices jump to Rs. 104,400
The price of 24 karat-gold jumped by Rs. 1600 to Rs 104,400 per tola in the local market today as the investors rushed to safe-haven assets amid capital markets volatility. The yellow metal had closed at Rs. 102,800 per tola on the previous trading day.
In the international market, gold prices increased up by $10 to $ 1,772 per ounce when compared to $1,762 while silver was pegged at $17.90 per ounce.
According to the Karachi Sarafa Association, the price of 10-gram gold gained Rs. 1,372 to settle at Rs. 89,506 against Rs. 88,134 on the last trading day.