Karachi, July 17, 2025 —
After a brief respite, the Pakistani rupee resumed its downward trend against the US dollar in the inter-bank market on Wednesday. The local currency closed at 284.96, depreciating by 0.10% or 29 paisa compared to Tuesday’s close at 284.67.
This marks a reversal of Tuesday’s marginal gain, when the rupee had appreciated by 0.02%, supported briefly by subdued demand. The resumption of depreciation is attributed to increased import payments, profit repatriation by multinational firms, and a cautious outlook amid looming external debt repayments.
“The persistent demand for the dollar, driven by import payments and repatriations, is pressuring the rupee,” said Ali Najib, Deputy Head of Trading at Arif Habib Ltd. “The situation is further complicated by cautious market sentiment ahead of external obligations.”
Another significant factor affecting the exchange rate is the State Bank of Pakistan’s (SBP) active dollar purchases from the interbank market. According to Najib, the SBP has purchased over $6 billion in FY25 so far. These interventions are aimed at rebuilding foreign exchange reserves, bolstered by IMF inflows, remittances, and debt rollovers.
Despite the improving reserves, speculative activity and global dollar strength are keeping the rupee under pressure. Analysts warn that without stronger capital inflows or monetary tightening, the currency could see further gradual depreciation in the short term.
On the global front, the US dollar strengthened on Wednesday in response to rising Treasury yields and fresh US inflation data. The report hinted at early signs of inflationary impact from former President Donald Trump’s renewed tariffs, which has also weakened currencies like the Japanese yen.
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Gold Market Divergence
In contrast to global trends, gold prices in Pakistan dropped sharply. According to the All Pakistan Sarafa Gems and Jewellers Association, the price of gold fell by Rs3,000 per tola, closing at Rs356,000. The 10-gram rate also declined by Rs2,572, settling at Rs305,212. This follows a previous day’s drop of Rs700 per tola.
Globally, however, gold rose 0.2% to $3,328.14 per ounce, buoyed by Middle East tensions, tariff uncertainty, and softer US producer price data. US gold futures slightly edged down to $3,333.60.
“The Trump tariff issue has resurfaced, and that’s driving global gold sentiment,” said Adnan Agar, Director at Interactive Commodities. He noted that gold remains supported at $3,300, with near-term fluctuations expected between $3,380 and $3,420 per ounce unless new developments arise.