SBP injects Rs2.1tr via OMOs

The State Bank of Pakistan (SBP) conducted Open Market Operations (OMO) on Friday, injecting a total of Rs2.1 trillion into the market.

The OMO included Rs571.7 billion through a Shariah-compliant Mudarabah-based OMO and Rs1,549 billion through a separate OMO Reverse Repo Purchase.

Meanwhile, the Pakistani rupee remained largely stable against the US dollar on Friday, recording a slight depreciation of 0.01% in the interbank market. By the close of trading, the currency stood at 280.26 against the greenback, reflecting a minor drop of 3 paisa. The previous day, the rupee had settled at 280.23.

Globally, the US dollar strengthened against major currencies on Friday, following its best single-day performance in three weeks. This uptick came as the Federal Reserve signalled no urgency in cutting interest rates. Market sentiment weakened due to concerns over the economic impact of US President Donald Trump's aggressive global trade tariff policies.

Earlier this week, the dollar index hit a five-month low of 103.19, retreating from its peak of 110.17 recorded on January 13, 2022. Initial optimism about Trump's policies has been replaced by fears that his trade war could push the US economy into recession.

Moreover, after reaching a record high in the previous session, gold prices in Pakistan declined on Friday, mirroring a downturn in the international market. In the local market, the price of gold per tola dropped by Rs2,000, settling at Rs318,800. Similarly, the price of 10-gram gold fell by Rs1,712, reaching Rs273,319, according to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA). On Thursday, gold prices had surged by Rs1,800 per tola, setting an all-time high of Rs320,800.

Internationally, gold prices also saw a decline on Friday. As per APGJSA, the global rate stood at $3,031 per ounce (including a $20 premium), marking a decrease of $19 during the day.

"The market is currently undergoing a correction phase," commented Adnan Agar, Director of Interactive Commodities. He noted that gold reached an intraday high of $3,047 and a low of $2,299 before stabilising around $3,000. If the market closes below $2,990, further declines could be expected. However, if it remains above $3,000, there is a possibility of an upward trend in the coming week.