Real exchange rate touches almost 104

Rupee edges up; gold prices hold steady despite international drop

KARACHI:

Pakistan's Real Effective Exchange Rate (REER) continued to rise in October 2025, reaching 103.95 compared to the revised 101.70 recorded in September, according to figures released by the State Bank of Pakistan (SBP) on Monday.

A REER reading above 100 indicates that the country's exports become less competitive while imports turn relatively cheaper, whereas a value below 100 reflects the opposite trend.

SBP data showed that REER climbed 2.21% month-on-month in October 2025. On a year-on-year basis, it was up 3.14% from 100.78 in October 2024. Topline Securities noted that the latest REER level was above the 10-year average of 103.3.

The Pakistani rupee exhibited a slight gain against the US dollar in the inter-bank market on Monday. It closed at 280.71, registering a small rise of Rs0.01 against the greenback.

Over the previous week, the rupee also posted a modest appreciation, gaining Rs0.10, or 0.04%, against the US dollar. The local currency ended the week at 280.72, compared with 280.82 recorded the week before, according to SBP data.

Gold prices in Pakistan remained stable on Monday, despite international prices trending lower, pressured by a stronger US dollar and diminished expectations of a US rate cut next month. Investors are closely watching delayed economic data this week, which could provide guidance on the Federal Reserve's future policy moves.

In the domestic market, gold per tola was traded at Rs430,662, while 10 grams of gold was sold for Rs369,223, according to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA). On Saturday, the per-tola price had declined by Rs9,100. Meanwhile, silver prices edged higher, gaining Rs55 to reach Rs5,368 per tola.

This trend reflects cautious investor sentiment as global cues continue to influence precious metal markets in Pakistan.

Spot gold was down 0.2% at $4,070.43 per ounce as of 11:40 am ET (1640 GMT). US gold futures for December delivery eased 0.5% to $4,072.30 per ounce, according to Reuters.

The dollar index inched higher, making dollar-priced bullion expensive for holders of other currencies.

The market is seeing "some back and forth choppy action ahead of what is expected to be the release of a deluge of economic data now that the US government has reopened," said David Meger, Director of Metals Trading at High Ridge Futures. "Right now, there's a lesser expectation for additional Fed rate cuts, which has dented optimism for gold."