SBP's forex reserves rise $30m to $11.7b

Foreign currency reserves of the State Bank of Pakistan (SBP) increased $30 million and reached $11.725 billion in the week ended January 10, 2025, showed data released by the central bank on Thursday.

With the fresh rise, Pakistan's total liquid foreign currency reserves stood at $16.451 billion, which included reserves of $11.725 billion held by the central bank and $4.726 billion deposited with commercial banks, the SBP said in a statement. It did not give any reason for the increase in reserves.

Later, the SBP announced that the United Arab Emirates had confirmed the rollover of its two $1 billion deposits placed with the SBP, extending their maturity by another year. The deposits were originally set to mature in January 2025.

Meanwhile, gold prices continued their upward trend in line with the increase in international markets. In the local market, the price of gold per tola rose Rs1,400, reaching Rs282,200, as reported by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA). This follows Wednesday's significant rise when bullion prices jumped Rs2,900 to Rs280,800 per tola.

The international gold rate also rose on Thursday. According to APGJSA, the price stood at $2,703 per ounce, higher by $13.

Interactive Commodities Director Adnan Agar highlighted that the global bullion market hit the intra-day high of $2,718 per ounce, with the day's low being recorded at $2,689.

Agar noted that the market was currently testing a critical zone between $2,720 and $2,722. If gold prices close above this level – possibly around $2,725 or $2,726, the market could march towards further highs.

Conversely, its failure to close above this resistance range could result in a correction, where it could potentially revisit support levels around $2,650 to $2,660.

Agar emphasised the importance of closing price at the end of trading (3am local time), which would determine "whether the market trends upwards or reverses to lower levels".

On the other hand, the Pakistani rupee recorded a slight dip against the US dollar, shedding 0.03% of its value in the inter-bank market. At the end of trading, the rupee stood at 278.86 to a dollar, down nine paisa from the previous day. The currency had closed at Rs278.77 on Wednesday, according to the SBP.

Globally, the US dollar weakened, retreating from recent highs after US inflation data showed signs of cooling, which led to lower bond yields. Meanwhile, the yen touched a one-month high as expectations for a rate hike in Japan increased.

While settling at 278.86/$ on Thursday, the Pakistani rupee has depreciated 0.11% in the current calendar year and has weakened 0.18% so far in the ongoing financial year, according to Ismail Iqbal Securities.