Forex reserves rise to $22.7b

Rupee steady at 278.27 while gold drops Rs2,300/tola on hawkish Fed signals, ceasefire

KARACHI:

Pakistan's total liquid foreign exchange reserves increased by $70 million to $22.742 billion during the week ended June 12, 2026, according to data released by the State Bank of Pakistan (SBP) and compiled by Arif Habib Limited.

The SBP's reserves rose by $5.8 million to $17.221 billion, while net reserves held by commercial banks jumped by $64.2 million to $5.521 billion. The combined liquid reserves now stand at $22.742 billion. Import cover improved marginally to 2.71 months, based on the average of the last three months' imports.

Meanwhile, the Pakistani rupee appreciated 0.01% against the US dollar in the inter-bank market on Wednesday, closing at 278.27, up Rs0.03 from Tuesday's close of 278.30. The dollar eased ahead of the Federal Reserve's first policy meeting under Chair Kevin Warsh. The yen weakened further into intervention territory, while the euro steadied at $1.1611 and sterling held at $1.3430.

Furthermore, gold prices in Pakistan witnessed a decline on Thursday, mirroring losses in the international market where the precious metal came under pressure from hawkish signals by the US Federal Reserve and a stronger dollar. A US-Iran ceasefire agreement further eased inflation concerns, contributing to the downward trend while providing some support by lowering oil prices.

According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold per tola dropped by Rs2,300 to settle at Rs452,963. Similarly, 10-gram gold was sold at Rs387,615 after a decline of Rs2,070. On Wednesday, gold per tola had risen by Rs100 to reach Rs455,236. The price of silver also followed suit, decreasing by Rs144 to Rs7,359 per tola.

In international markets, spot gold fell 0.3% to $4,246.55 per ounce by 10:30am ET, according to Reuters. The metal had touched its lowest level since November 2025 last week. US gold futures plunged 2.7% to $4,264.30. The decline was attributed to expectations of tighter monetary policy from the Federal Reserve, with nine out of 19 policymakers indicating a potential rate hike this year. A stronger US dollar added further pressure on the commodity.

Adnan Agar, Director at Interactive Commodities, shared his analysis of the market movement. "The market is down today. Since the US monetary policy yesterday was a bit hawkish, the market today made a high of $4,329 and a low of $4,223. Right now, the market is standing at $4,228, which is very close to the low," he said. Agar noted that the overall sentiment points downward, with possible support around $4,100. "We will see in the coming days because the future is on the upside. However, there are talks in the international market that it might hit $3,600 to 3,900 again. Even if it goes there, it will recover immediately from that point," he added.

Market analysts suggest that while short-term pressures from US monetary policy and the stronger dollar may persist, gold could find buying interest on dips due to its traditional safe-haven status amid lingering global uncertainties. Investors are closely watching upcoming economic data and central bank communications for clearer signals on the interest rate trajectory.