Gold continues to lose value in Pakistan as rupee appreciates

ISLAMABAD: As the rupee gained ground against the US dollar the per tola price of 24 karat gold declined by Rs2,600 and was sold at Rs209,400 on Monday compared to the Rs212,000 close it did last week.

The price of 10 grammes of 24 karat gold also decreased by Rs2,229 to Rs179,527 from Rs181,756 whereas the price of 10 grammes 22 karat gold went down to Rs165,544 from Rs166,610, according to the All Sindh Sarafa Jewellers Association.

The price of per tola decreased by Rs50 to Rs2,500 whereas that of 10 grammes silver went down by Rs42.87 to Rs2,143.34.

The price of gold in the international market increased by $7 to $1,926 from $1,919, the association reported.

Earlier today, the Pakistani rupee massively recovered against the US dollar in the open market during intraday trade owing to the crackdown initiated by the government against currency smugglers, hoarders and black marketers.

The greenback was trading below the Rs300 mark in the open market on Monday as the local currency recovered over Rs4 in a single day.

While the rupee closed at 301.16 against the dollar in the interbank market.  

"The rupee has gained significantly in the open market in a week due to the government's action against the smuggling of the currency in big cities," said Arif Habib Limited (AHL) Head of Research Tahir Abbas while speaking to Geo.tv.

"This was a very important measure as our currency was continuously depreciating. It was also the IMF's [International Monetary Fund] demand to maintain a difference between the rupee-dollar exchange rate at 1.25%," he added.

He said that further correction of up to Rs10-15 is expected in the coming days.

Pakistan announced a crackdown against illegal currency smugglers and hoarders following Chief of Army Staff (COAS) General Syed Asim Munir’s meeting with leading business figures in Lahore and Karachi. Gen Munir assured the business community of fostering “transparency” in the dollar exchange and interbank rates.

The rupee was poised to extend its recovery in the coming week, supported by administrative measures and robust dollar inflows from exports and remittances, The News reported citing dealers.