Rupee strengthens on second consecutive day

KARACH:

The Pakistani rupee continued its upward trend against the US dollar on Tuesday, recording a modest appreciation of 0.04% in the interbank market. By the close of trading, the rupee had strengthened by Re0.10, settling at Rs277.87.

On Monday, the rupee had gained 0.03%, closing at Rs277.97, reflecting a Re0.08 increase, as reported by the State Bank of Pakistan (SBP).

Experts say Pakistan's economic indicators are showing signs of improvement, with a narrowing trade deficit and a significant decline in inflation, boosting optimism for the country's economic outlook. The Pakistani rupee's recent appreciation against the US dollar can be attributed to these positive developments, as well as a sense of political stability. While political unrest in November had momentarily impacted the currency, it has since rebounded, reflecting growing confidence in the government's ability to navigate economic challenges. This stability, coupled with improving trade and inflation metrics, is contributing to the rupee's upward momentum.

According to international media, globally, the dollar started in a cautious mood on Monday in what is shaping up to be a critical week for the prospect of US rate cuts, while the yen's recent rebound was underpinned by wagers on rising rates at home.

Meanwhile, after two consecutive declines, gold prices in Pakistan saw an increase on Tuesday, reflecting a rise in the international market. In the local market, the price of gold per tola reached Rs275,200, rising by Rs700 in a single day, according to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA). On Monday, gold prices had fallen by Rs1,700 per tola in Pakistan. Internationally, the price of gold rose on Tuesday, reaching $2,640 per ounce, marking a gain of $7 during the day, as reported by APGJSA.