Rupee up for 18th day, SBP shuts exchange firm

Central bank tightens oversight of currency dealers; gold holds at record highs

KARACHI:

The Pakistani rupee continued its upward momentum against the US dollar on Tuesday, notching its 18th straight gain in the inter-bank market.

At close, the local currency settled at 281.72 per dollar, up three paisa, or 0.01%, compared to Monday's close at 281.75, according to data from the State Bank of Pakistan (SBP). Since August 6, 2025, the rupee has appreciated by a cumulative 95 paisa against the greenback, reflecting improved sentiment in the foreign exchange market.

Analysts at Ismail Iqbal Securities noted that while the rupee edged higher on a day-on-day basis, its broader performance remains mixed. "At the end of the trading session, PKR appreciated by 0.01% day-on-day against the greenback to settle at 281.72, whereas it has depreciated by 1.13% in the calendar year to date and appreciated by 0.73% in the fiscal year to date," the brokerage said.

Moreover, the SBP has, with immediate effect, cancelled the authorisation/licence of Money Masters Currency Exchange Company on account of serious violations of the central bank's regulatory instructions.

"The exchange company, including its head office and outlets, can no longer undertake any kind of foreign exchange-related business activity," an SBP statement said.

Meanwhile, gold prices in Pakistan remained steady on Tuesday, a day after setting fresh records, even as the international market surged to new highs on expectations of a US Federal Reserve rate cut and heightened political and economic uncertainty.

According to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of gold per tola stood unchanged at Rs370,700, while the rate for 10 grams also held steady at Rs317,815. In the international market, gold climbed over 1% to surpass the $3,500 per ounce mark for the first time, reaching as high as $3,514 during the session. It later steadied around $3,480 (with a $20 premium applied locally), as per the APSGJA figures.

Interactive Commodities Director Adnan Agar said gold had firmly broken its all-time high level of $3,500 while the day's low was at $3,470. "The market was still up and showing no signs of correction. A lot of important US economic data, including monthly employment figures, is due this week. Until then, gold may stay stable or face a mild correction," he explained. Agar added that speculation was growing that the Fed would cut interest rates in the coming weeks, which boosted demand for safe-haven assets like gold.