The State Bank of Pakistan (SBP) has conducted Open Market Operations (OMO), injecting approximately Rs2.94 trillion into the banking system. This liquidity injection comprised two separate operations, both with a seven-day tenor. The larger portion, Rs2.4 trillion, was injected through a conventional Reverse Repo Purchase operation, accepting all 22 quotes at a rate of 12.07% per annum. Additionally, the SBP conducted a Shariah-Compliant Mudarabah-Based OMO injection, accepting all 10 quotes for Rs5.6 billion at 12.09% per annum.
The Pakistani rupee posted a slight gain against the US dollar on Friday, appreciating by 0.03% in the interbank market. By the end of the trading session, the local currency closed at 280.47, registering an increase of nine paisas from the previous day's close of 280.56.
Globally, the US dollar struggled to recover, while the yen, a safe-haven asset, hovered near a six-month high on Friday. This came as markets reacted to the economic implications of President Donald Trump's newly introduced tariffs.
Zafar Paracha, President of the Exchange Companies Association of Pakistan, noted that record corporate profits and repatriations by banks and multinationals are putting pressure on the rupee.
Due to the passing of a central member's son, gold prices in Pakistan were not released by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA). However, the gold market has been experiencing significant fluctuations.
Internationally, gold prices fell nearly 2% on Friday as traders liquidated their bullion positions following wider market sell-offs after China retaliated with fresh tariffs against Trump's sweeping levies. Spot gold was down 1.9% at $3,053.98 an ounce after hitting a record high of $3,167.57 on Thursday. US gold futures declined 1.6% to $3,072.10. Analysts said investors were selling gold to cover losses in other asset classes prompted by margin calls.
The Pakistani gold market saw a sharp price correction today following several days of strong gains, according to Adnan Agar, Director at Interactive Commodities.
Agar reported that gold reached a high of $3,136 before falling to a low of $3,026. By his analysis, the market was hovering around $3,032. He attributed the broader instability to global factors, particularly Trump's trade tariffs.
Heavy selling pressure was observed in the market over the past two days. "The faster it went up, the faster it's likely to come down," Agar said, as the market remains in a lowered position following the correction.
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