💹 Rupee Keeps Winning Streak Alive — Dollar Takes a Hit!

Pakistani Rupee Strengthens for Fifth Day Against US Dollar

The Pakistani rupee continued its upward trend on Wednesday, appreciating by 20 paisa (0.07%) in the inter-bank market. The USD to PKR exchange rate closed at Rs282.22, up from the previous day’s Rs282.42.

This is the currency’s fifth straight day of gains, supported by positive market sentiment after authorities intensified their crackdown on illegal currency trading and smuggling. Just last week, a local court sentenced three illicit foreign exchange dealers to five years in prison and fined them Rs1 million each.

Global Dollar Decline Boosts Sentiment

Globally, the US dollar fell after soft inflation data strengthened expectations of a Federal Reserve rate cut in September. Political uncertainties in Washington — including former President Donald Trump’s efforts to exert greater control over US institutions — further pressured the greenback.

The US Dollar Index touched its lowest level in over two weeks, making commodities like gold more attractive to international buyers. Yields on the benchmark 10-year US Treasury note also slipped, according to Reuters.

Gold Prices in Pakistan Dip Despite International Rise

In the local bullion market, gold prices in Pakistan moved against the global trend. The price of gold per tola dropped by Rs200 to Rs358,100, while the 10-gram rate fell by Rs171 to Rs307,013, as reported by the All Pakistan Sarafa Gems and Jewellers Association. On Tuesday, gold had already declined by Rs500 per tola.

In contrast, international gold prices gained as a weaker dollar and falling Treasury yields encouraged buying. Spot gold rose 0.4% to $3,357.59 per ounce by 12:10 pm ET (1610 GMT), while US gold futures for December delivery added 0.3% to $3,408.50.

Analysts Monitor Geopolitical and Policy Triggers

Adnan Agar, Director at Interactive Commodities, said the global gold market was trading within a narrow range, with a high of $3,370 and a low of $3,342 on Wednesday. “The market is steady around $3,355, waiting for fresh catalysts,” he said.

He pointed to the upcoming Russia–US–Ukraine summit this weekend as a potential price driver. “If the talks fail, gold could climb further. A breakthrough might trigger a correction,” Agar noted.

Market attention is also fixed on the US Federal Reserve’s policy meeting next month, where analysts see a strong likelihood of a rate cut — a move that could impact gold’s price direction.

Nikos Tzabouras, Senior Market Analyst at Tradu.com, added: “Gold is supported by growing expectations of a September Fed rate cut, after benign inflation data and weaker US jobs growth in July.”