KARACHI – July 29, 2025:
The Pakistani rupee continued its upward trajectory on Monday, closing stronger against the US dollar in the inter-bank market. The local currency gained 24 paisa to settle at Rs283.21, marking a 0.08% appreciation from Friday’s closing.
This latest rise adds to last week’s momentum, where the rupee gained 0.50% — its sharpest weekly gain in 93 weeks, according to analysts at AKD Securities. The local unit had strengthened from Rs284.87 to Rs283.45 over the previous week, highlighting a notable shift in sentiment around the currency.
While the uptrend has sparked cautious optimism in financial circles, the Pakistan Business Forum (PBF) has voiced skepticism, suggesting that the current exchange rate may not reflect true market fundamentals. In a statement, the PBF argued that based on Pakistan’s macroeconomic indicators, the dollar’s actual value should be closer to Rs260, pointing toward what it believes is a managed exchange rate regime.
Meanwhile, gold prices in the domestic market took a dip, echoing a global trend as investor appetite for safe-haven assets cooled off. The price of gold per tola dropped by Rs100 to settle at Rs356,300, while the 10-gram rate declined by Rs85 to Rs305,470, according to data from the All Pakistan Sarafa Gems and Jewellers Association (APGJSA).
The pullback in gold comes as international bullion prices hit a near three-week low. This followed news of a tentative breakthrough in trade negotiations between the United States and the European Union — a development that boosted market confidence and reduced demand for traditional safe-haven investments like gold.
“Gold has softened globally, trading between a low of $3,301 and a high of $3,345, with current levels hovering around $3,309,” said Adnan Agar, Director at Interactive Commodities. “The tentative trade agreement has shifted investor focus away from safety and toward risk-based assets.”
Market watchers are now turning their attention to key economic signals from the US, with the Federal Reserve’s interest rate decision due Wednesday night and the monthly employment report expected Friday. Both data releases are likely to set the tone for global markets, including the trajectory of gold.
Back home, Saturday also saw a decline in gold prices, with a Rs300 drop per tola — bringing the total two-day decrease to Rs400. Analysts suggest that unless there is a fresh round of geopolitical tension or disappointing economic data, gold prices may remain under pressure in the near term.
