The State Bank of Pakistan (SBP) carried out net foreign exchange interventions amounting to $7.8 billion between June 2024 and May 2025.
"The central bank purchased $522 million worth of foreign currency (US dollar) from the inter-bank forex market in May 2025," noted Topline Securities. This brings last 12 months (June 2024 to May 2025) intervention to $7.76 billion.
These interventions led to an overall increase of $2.1 billion in the country's foreign exchange reserves between June 2024 and May 2025, while the remaining amount was largely utilised for debt repayments, according to data compiled by Arif Habib Limited (AHL).
With May's interventions of $522 million, the central bank's reserves rose $1.24 billion to $11.52 billion. "The remaining amount was allocated to managing debt repayments," noted AHL.
Moreover, the Pakistani rupee inched higher against the US dollar on Monday, appreciating 0.01% in the inter-bank market. At the close of trading, the local currency settled at 281.87, marking a gain of three paisa and extending its winning run to 12 consecutive sessions.
"However, the currency has depreciated 1.18% in the calendar year to date while posting an appreciation of 0.67% on a fiscal year-to-date basis," said Ismail Iqbal Securities.
Last week, the rupee had posted another positive performance, rising 16 paisa to close at 281.90 compared to 282.06 a week earlier, according to figures released by the State Bank of Pakistan (SBP).
Meanwhile, gold prices in Pakistan remained stable, in contrast to the international market, where bullion fell as investors booked profits and a stronger US dollar weighed on sentiment.
Global focus has now shifted to the upcoming US Personal Consumption Expenditures (PCE) data for signals on the Federal Reserve's policy outlook.
According to the All Pakistan Sarafa Gems and Jewellers Association, the local price of gold per tola stood unchanged at Rs359,800, while the rate for 10 grams also remained firm at Rs308,470. The precious metal had surged by Rs4,100 per tola on Saturday, touching Rs359,800.
Commenting on the trend, Interactive Commodities Director Adnan Agar said the market was unusually subdued. The low was at $3,359 and the high stood at $3,375.
"Today, the market is very cold and very quiet," he noted. There was no such activity, although from Friday till now, the market had been up and was not down, he added.
Agar highlighted that only geopolitical developments such as the Ukraine-Russia conflict or fresh cues from the US Fed on rate movements could trigger movement in gold prices in the coming days.
Spot gold inched down 0.1% at $3,370.14 per ounce as of 0957 am ET (1357 GMT), after hitting its highest level since August 11 on Friday, according to Reuters. US gold futures for December delivery also fell 0.1% to $3,414.90.
The dollar nudged 0.2% higher against rival fiat currencies, making bullion priced in the dollar more expensive for foreign buyers.
COMMENTS
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ