Rupee's long winning streak ends
The Pakistani rupee's winning streak of 33 days against the US dollar paused on Wednesday, as the currency recorded a slight dip in the inter-bank market.
By the day's close, the rupee stood at 281.43 against the greenback, slipping by one paisa. A day earlier, the local unit had settled at 281.42, marking its 33rd straight session of appreciation with a gain of three paisa.
In global markets, the US dollar ticked higher from a nearly one-week low, while traders maintained expectations of two more rate cuts by the Federal Reserve this year. This came as Fed Chair Jerome Powell adopted a cautious stance on the pace of monetary easing in his latest remarks. The US dollar index rose about 0.6%, making dollar-priced bullion more expensive for holders of other currencies. The benchmark 10-year Treasury yields also drifted higher, according to Reuters.
The Pakistani rupee recorded a mixed performance across different time horizons, according to Ismail Iqbal Securities. Data shows that the local currency has depreciated by 1.02% against the US dollar since the beginning of the current calendar year. However, on a fiscal year-to-date basis, the rupee has appreciated by 0.83%, reflecting relative stability in recent months.
Meanwhile, gold prices in Pakistan held steady at a record Rs398,800 per tola, even as international bullion rates eased due to a stronger US dollar and investor profit-taking.
According to the All Pakistan Sarafa Gems and Jewellers Association (APSGJA), 10 grams of gold were traded at Rs341,906, unchanged from the previous session. Silver prices also remained stable at Rs4,637 per tola. The local market stability came a day after gold surged by Rs5,100 per tola, hitting an all-time high of Rs398,800 on Tuesday.
Globally, spot gold fell 0.5% to $3,744.19 per ounce as of 11:53 am ET (1553 GMT), after hitting a record high of $3,790.82 on Tuesday. US gold futures for December delivery edged down 1% to $3,776.50.
The US dollar's rebound weighed on the precious metal, while investors awaited key economic data later this week for further signals on the Federal Reserve's policy trajectory.
Commenting on the trend, Interactive Commodities Director Adnan Agar said international gold was trading at $3,754 per ounce, after touching the high of $3,780 and low of $3,749 during the day.
"The market has cooled off slightly and some profit-taking is visible. If the trend remains negative for a day or two, gold prices may see further correction. Otherwise, a rebound is likely," he added.