The price of the yellow gold in 10-gram increments increased by Rs6,000 to Rs173,610, according to the All Sindh Sarafa Jewellers Association (ASSJA).
However, the exchange rate on the global market dropped to $1,936 after losing $6.
The news comes as the rupee hit a new low against the dollar in the interbank market, falling by 7.17 rupees, or 2.73 %, from yesterday’s close, to reach Rs262.6.
The price of a tola of gold has reached the Rs 200,000 barrier for the first time in Pakistani record, as the value of the Pakistani rupee continues to decline since the government permitted free floating of exchange rates.
The increase in gold prices is the result of investors fleeing the safety of the rupee to gold bullion to protect themselves from the country’s worsening economic unrest.
Rupee depreciation
It should be mentioned that despite numerous promises made by the finance minister who took over from Miftah Ismail to lower the dollar rate to below Rs200, the dollar soared to a record high of Rs268.30 in the interbank market.
On Friday, the Pakistani rupee continued to decline as the government relaxed currency controls in an effort to persuade the International Monetary Fund (IMF) to deliver a delayed loan tranche. The local currency fell almost Rs12 versus the US dollar in the interbank market.
The local currency was trading at Rs268.30 as opposed to Thursday’s interbank market close of Rs255.43.
The rupee lost 24.11 in the interbank market the day before, reaching a low of 255.43 rupees to the dollar. The 9.6% decline represents the second-largest session-level decline.
The finance minister also thought that market forces had twice artificially devalued the rupee to Rs240/USD in 2022 once in July and again in September.
As a result, the central bank investigated banks and found 13 institutions to be at fault. The SBP announced earlier this month that it would take action against the banks soon.
In the meantime, Pakistan gave the United States assurances on Wednesday that it was still committed to the IMF programme even though its reserves had shrunk to barely enough to cover a month’s worth of imports following another $500 million in debt repayment.
