Pakistani rupee recovered against the US dollar on the second day of the new fiscal year FY 2020-21.
It gained Rs. 1.17 against the US dollar and was closed at Rs. 166.88 in the interbank market as compared with the previous day close of 168.05 amid ease in demand after the closing of the fiscal year. The rupee had nosedived to an all-time low at Rs. 168.18 on Monday.
The rupee has been under pressure, particularly in the past few weeks, owing to the fiscal year-end.
Yaqoob Abubakar from Tresmark (an app that tracks financial markets) says:
SBP has received $1.3 billion on 30th June 2020 as the government of Pakistan receives loan disbursements from Chinese Banks. These transfers have helped SBP improve its reserves. The market remained volatile today as the highest trading rate was 167.90 whereas the lowest rate was Rs. 166.50. We expect that rupee would remain stable tomorrow.
Within the Open Market, the currency was being traded at 167/168.50.
“The Foreign loans were pouring in, Current Account is manageable and exports are growing. The currency ought to remain stable,” said A.A.H Soomro, managing director at Khadim Ali Shah Bukhari Securities.
Gold Prices Drops
The market witnessed a decrease in the price of 24 Karat-Gold as it dropped by Rs. 600 to Rs. 104,600 per tola in bullion markets. The precious metal had closed at Rs 105,200 per tola on the last day.
According to the Karachi Sarafa Association, the price of 10-gram gold also witnessed a decrease of Rs. 514 to settle at Rs. 89,678 compared to Rs. 90,192 on the last trading day.
In the global market, gold prices inched lower by $8 to clock in at $1,774 per ounce while silver was valued at $17.96 per ounce.