After depreciating, the local currency closed at Rs277.74 compared to the previous day’s closing of Rs277.66, according to the Forex Association of Pakistan (FAP).
The association reported that the buying and selling rates of the dollar in the open market stood at Rs278 and Rs279.50 respectively.
The State Bank of Pakistan (SBP) reported that the price of Euro decreased by 42 paisa to close at Rs303.04 against the last day’s closing of Rs303.46.
The central bank reported that the Japanese yen went up by 01 paisa and closed at Rs1.86, whereas an increase of 42 paisa was witnessed in the exchange rate of the British Pound, which traded at Rs363.21 as compared to the last day’s closing of Rs362.79.
According to FX Street, the US dollar traded rather steady on Tuesday after reaching a 10-week high on Monday, fueled by investors’ views that the Federal Reserve won’t cut interest rates as quickly and aggressively as previously expected. Moreover, markets seem to be betting on a possible win for former President Donald Trump in the November 5 presidential election after several betting websites and polls showed the Republican nominee starting to lead, it reported.
Meanwhile, the per tola and 10-gram prices of 24-karat gold on Tuesday decreased by Rs700 to Rs275,000 and Rs600 to Rs235,768 respectively.
The 24-karat gold sold at Rs275,000 per tola compared to its sale at Rs275,700 on last trading day, the All Sindh Sarafa Jewellers Association reported.
As per the association, the price of 10-gram of 24 karat gold decreased by Rs600 to Rs235,768 from Rs236,368. The price of 10-gram gold of 22-karat decreased to Rs216,121 from Rs216,671, it added.
In the international market, gold recovered into the $2,650s after weakening following an easing of tensions in the Middle East, according to FX Street.
This came after a The Wall Street Journal (WSJ) exclusive in which Israeli Prime Minister Benjamin Netanyahu reportedly told US President Joe Biden that he would only strike military targets in Iran during the anticipated retaliation.
This, and a continued reduction in market bets that the Federal Reserve (Fed) will slash interest rates, is driving the US Dollar (USD) higher and weighing on Gold price, the report said.
US survey data is also showing that inflation expectations remain elevated, with the latest Michigan Consumer Sentiment Survey indicating expectations in the long-term (5-10 years) have “skyrocketed” to 7.1% in October, “the highest in 40 years” according to analysts at The Kobeissi Letter.
Meanwhile, the price of per tola and ten gram silver remained unchanged at Rs. 3,050 and Rs. 2,614.88, respectively.
